A sharp surge in the bond yields has come again to haunt the equity markets.
• The US 10-year treasuries’ yield surpassed 1.6 per cent, highest in one year.
• Higher bond yield is theoretically bad for equity markets.
• However, high economic growth can offset the negative impact of rising bond yields. Is Bitcoin’s rally coming to a halt? Bitcoin has seen an unprecedented demand which skyrocketed its price from US$11,000 in October 2020 to above US$58,300 in February 2021. During the rally there has been a few instances when Bitcoin had fallen by more than 10 per cent in a day.
• Bitcoin has slid by almost 22 per cent last week, its worst weekly fall in over a year.
• Bitcoin has faced selling pressure just when the global equity markets are falling due to rising bond yields.
• Bill Gate’s take on Bitcoin to “stay aside if you don’t have spare money” hit the sentiments of the crypto bulls. America’s $1.9 trillion COVID-19 Relief Package Passed in the House, what is next?
• After being passed in the House, the $1.9 trillion Coronavirus rescue package heads to the Senate for discussions.