World Stocks Reach Records, U.S. Bond Yields near 1M Low


World stock prices held near record highs on Wednesday, while U.S. bond yields flirted with their lowest levels in a month, as investors bet the Federal Reserve is some way off from tapering its economic stimulus.

MSCIs allcountry world index last stood at 716.55, after hitting an intraday high of 718.19 on Tuesday, led by gains in Europe.

European stocks are expected to open almost flat, with Euro Stoxx futures up 0.1 and Britains FTSE futures down 0.1 in early trade.In Asia, the MSCIs broadest index of AsiaPacific shares outside Japan ticked down 0.20 and Japans Nikkei average shed 0.28.

On Wall Street on Tuesday, the SP500 was steady and near its record high.

The 10year U.S. debt yield, on the other hand, fell to 1.513, its lowest level in a month, and down a quarter of a percentage point from a 14month peak of 1.776 hit in March. It last stood at 1.533, almost flat so far on Wednesday.

As the recovery in the job market is contained, any discussion at the Fed on tapering is unlikely to gain momentum, even if it starts soon, said Naokazu Koshimizu, senior rates strategist at Nomura Securities.

So those who had bet on steepening of the yield curve are unwinding their positions while some investors are also now buying to earn carry.

U.S. payrolls data last Friday showed hiring did not grow as fast as economists had expected, despite growing signs of a labour shortage.

Many analysts think more evidence of strong job growth would be required for the Federal Reserve…


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