Treasuries rally and stocks drop on rising economic concerns
US government bonds rallied and global stock markets dropped sharply, as worries about inflation were replaced by concerns that the global economic recovery from coronavirus has peaked.
The yield on the 10-year Treasury bond, which moves inversely to its price, fell 0.04 percentage points to 1.276 per cent. The move put the world’s benchmark bond yield, which influences borrowing costs for companies and households worldwide, at its lowest level since early February and on track for its biggest weekly drop since June 2020.
Stock markets fell first in Asia before the negative mood rippled into Europe then on to Wall Street, in a move analysts blamed on a sudden realisation that high rates of US economic growth were about to peak at the same time as signs of a slowdown in China.
Wall Street’s S&P 500 index fell 1.5 per cent in early trades, while the technology-focused Nasdaq Composite also dropped 1.5 per cent….