* Rise in yields globally spark inflation fears * Cryptocurrencies slide as threat urge for food sours * Graphic: World FX charges https://tmsnrt.r
* Rise in yields globally spark inflation fears * Cryptocurrencies slide as threat urge for food sours * Graphic: World FX charges https://tmsnrt.rs/2RBWI5E By Kevin Buckland TOKYO, Feb 26 (Reuters) – The U.S. greenback held positive aspects Thursday after rebounding in a single day from three-year lows following a spike in U.S. bond yields. The yen, which tends to weaken when U.S. yields rise, slid to a recent six-month low versus the buck. Authorities bonds, and notably U.S. Treasuries, have grow to be the point of interest of markets globally, which have aggressively moved to cost in earlier financial tightening than signalled by the Federal Reserve and its friends. The yen’s decline got here even amid a sell-off in shares, because the surge in yields fomented inflation worries. The yen and greenback are each conventional haven currencies. Rising-market and commodity-linked currencies retreated, with the Australian and Canadian {dollars} stepping again from three-year highs. Cryptocurrencies additionally tumbled, with bitcoin sliding 5% in a single day and ether dropping 9%. “The fastened earnings rout is shifting right into a extra deadly section for dangerous property,” after initially being interpreted as a “story of bettering development expectations,” Westpac strategists wrote in a consumer be aware. “It seems to be the case that bond markets are ‘taking up’ the central bankers’ world view, and standing in entrance of the present momentum is unwise.” Bond yields have climbed this 12 months on the outlook for large fiscal stimulus amid continued ultra-easy financial coverage, led by the USA. An acceleration within the tempo of vaccinations globally has additionally bolstered what has grow to be generally known as the reflation commerce, referring to bets on an upswing in financial exercise and costs. In current days although, an increase in inflation-adjusted bond yields has accelerated, indicating a rising perception that central banks could must pare again ultra-loose insurance policies, regardless of their dovish rhetoric. The benchmark 10-year Treasury yield spiked above 1.6% in a single day for the primary time in a 12 months, after an public sale of $62 billion of 7-year notes was met with weak demand. The greenback index edged as much as 90.381, holding on to a 0.2% rise from Thursday, when it rebounded from losses of as a lot as 0.26% earlier than the bond tender. The buck was little modified at 106.2 yen after earlier touching 106.43 for the primary time since September. It has strengthened 2.8% after the primary back-to-back month-to-month will increase since mid-2018, placing the yen among the many worst performing main currencies this 12 months. The Australian greenback continued its retreat after topping $0.80 on Thursday for the primary time since February of 2018, declining 0.2% to 0.78525. The Canadian greenback weakened to C$1.2613 after falling from its personal three-year high to the buck at C$1.2468 in a single day. The euro weakened 0.1% to $1.2158 after touching a seven-week excessive of $1.22435 on Thursday. Bitcoin was barely weaker Friday at $46,704, whereas ether slipped to $1,476. ======================================================== Forex bid costs at 110 GMT Description RIC Final U.S. Shut Pct Change YTD Pct Excessive Bid Low Bid Earlier Change Session Euro/Greenback $1.2156 $1.2175 -0.14% -0.49% +1.2185 +1.2137 Greenback/Yen 106.2270 106.2100 +0.02% +2.85% +106.4170 +106.1700 Euro/Yen 129.14 129.35 -0.16% +1.75% +129.5300 +128.9900 Greenback/Swiss 0.9054 0.9051 +0.04% +2.35% +0.9066 +0.9049 Sterling/Greenback 1.3991 1.4009 -0.14% +2.39% +1.4024 +1.3950 Greenback/Canadian 1.2619 1.2605 +0.09% -0.93% +1.2647 +1.2598 Aussie/Greenback 0.7848 0.7870 -0.27% +2.03% +0.7882 +0.7823 NZ 0.7348 0.7370 -0.28% +2.34% +0.7380 +0.7310 Greenback/Greenback All spots Tokyo spots Europe spots Volatilities Tokyo Foreign exchange market information from BOJ (Reporting by Kevin Buckland; Modifying by Stephen Coates)