Bonds crash on stimulus-driven hopes

U.S. Treasuries were seen subdued on Thursday. This followed after investors’ sentiment was dampened by a report that President-elect Joe Biden will announce a stimulus package as massive as $2 trillion. Japanese shares, on the other hand, reached a three-decade high in anticipation that the global economy will soon recover.

The yield on benchmark 10-year U.S. Treasuries advanced 1.1105%, increasing with two basis points after CNN reported that Biden could release a 2-trillion worth of relief package. The estimate came larger than what investors expected, which will be covered by government borrowing.

Japan’s Nikkei recorded a 0.9% increase to hit its highest in three decades. MSCI’s broadest index of Asia-Pacific shares outside Japan performed just below its all-time high touched on Monday. Meanwhile, S&P 500 futures, FTSE futures, and EuroSTOXX 50 futures all jumped about 0.2%.