Yields return to the turn of the century as technology carries the indices

Yields at turn-of-the-century levels

The bond market supplied Wednesday's main story. The yield on the 10-year US Treasury rose to a new 24-year high, according to the Wall Street Journal's live coverage of the session. By the afternoon the paper was reporting fresh highs in Treasury yields. Its evening piece put the move in historical terms: surging yields, it said, have brought the bond market back to the turn of the century.

London had its own version of the same date. This is Money reported that the UK government would pay the highest yield at a 10-year debt auction since 1999. For the government, a higher auction yield means a higher cost of borrowing for the ten years those bonds run.

Price pressure has not eased everywhere either. Euronews reported that Italy's inflation rate accelerated again in September to 4.2 per cent, a three-year high.

The financial press followed the selloff closely, and much of its attention went to savers rather than traders. The Journal ran a guide to owning bonds while they are selling off, and a piece asking whether bonds, having slammed retirement funds, deserve a second chance. A separate Journal report described money managers asking their clients to give the bond market another chance. In Britain the movement ran the other way, towards taking money out. Sky News reported a 70 per cent surge in pension withdrawals, driven by fears about tax.

Technology carries the indices

Equities divided along a familiar line on the last trading day of the quarter. The Journal reported that technology shares lifted the Nasdaq on Wednesday while the broader market slipped. Its review of the quarter just ended described a tech-fuelled stock market that has powered through, but which limps into the fourth quarter.

The pattern held in Asia overnight. Japan's Nikkei rose 1.0 per cent, led by chip stocks.

London looked set for a softer start. City A.M.'s live coverage this morning expected the FTSE 100 to slide, with the oil price keeping pressure on markets. On Wall Street, the Journal reported that the banks' trading desks have come down from a record high. In Washington, the Guardian reported that a Federal Reserve watchdog found no criminal violations over cost overruns on the central bank's building renovation.

The same technology that has carried the indices drew an official warning. The BBC reported that the head of the Bank of England has cautioned that the AI boom could trigger market shocks. A day earlier, the Guardian reported the Bank's boss calling for a 'right to intervene' in AI amid a growing threat. China offered a different angle on the trade. Natixis found that Chinese companies trail their global peers on profits, according to the South China Morning Post, but identified the boom in power for AI as a bright spot.

Hong Kong's record listing year

Hong Kong closes the quarter with a record. The South China Morning Post reported that the city's IPO haul in the first nine months of the year smashed the previous high, even as Nasdaq retained the lead in money raised. The pipeline is not empty. A mainland Chinese maker of printed circuit boards has won Hong Kong approval for a planned US$3 billion listing, the paper reported, citing sources.

London may get a float of its own. Sky News reported that the insurance broker Howden Group has lined up Darroch as chairman ahead of its listing.

Elsewhere, corporate news turned on ownership and control. DFI Retail has sold its stake in Maxim's in return for the Starbucks business and US$340 million, according to the Post. In Britain, the Guardian reported that Poundland's management is in talks to lead a bid that could save 11,000 jobs. City A.M. asked whether Brewdog can bring its 'equity punks' onside as it tries to move on from James Watt.

Not every listed name fared well. This is Money reported that Shein's shares crashed to a record low as profits slumped amid fallout from Iran. In mainland China, the investor known as 'China's Warren Buffett' added Moutai shares for a third time, the Post reported, as the baijiu sector seeks a bottom. Record listings and record lows sat side by side in the same morning's pages.