World shares sink as bond yields, commodities surge
Hindustan TimesWorld shares sank on Monday as expectations for faster economic growth and inflation battered bonds and boosted commodities, while rising real yields made equity valuations look more stretched in comparison. "The coming week is relatively thin on the international data agenda, but after the recent rise in long bond yields, Fed Chairman Powell's hearings in both chambers of Congress will be attracting great interest," said Elisabet Kopelman, US economist at SEB. "The fact that the most recent rise in long bond yields has been driven by higher real interest rates and not just inflation expectations increases the probability of a dovish message." Earlier in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan went flat, after slipping from a record top last week as the jump in US bond yields unsettled investors.