While earnings season is keeping investors busy across markets worldwide, another topic that’s been taking up space in investors’ minds is that of rising yields. On Tuesday, the U.S. 10-year treasury yield topped 3 percent and continued to extend gains on Wednesday.
Investors around the world have been fixated on the 10-year note yield as of late, with concerns looming that hitting the 3 percent barrier could trigger a reaction from financial markets both in the U.S. and internationally.
While breaking the psychological barrier did initially trigger a negative reaction from markets on Wednesday, indexes have since shown signs of bouncing back. In the U.S., stocks finished mostly higher on the back of positive earnings, while in Asia, markets were relatively mixed.
With yields rising, market participants are wondering what this will mean for the global economy, with many expecting this to mean higher interest rates from central banks.
Switching focus to Thursday’s session, investors will be turning their attention to Frankfurt, where the European Central Bank (ECB) is due to announce its latest monetary policy decisions, followed by a press conference.
While the ECB is expected to hold steady on its current monetary policies, investors will be paying close attention to the press conference where President Mario Draghi is expected to deliver remarks on the current economic state of the euro zone.
Other topics that Draghi may touch upon include the bond market, trade, economic data, and the euro. The central bank’s rate decision is scheduled for 12:45 a.m. London Time (7:45 a.m. ET), followed by the conference due to begin at 1:30 p.m. London time (8:30 a.m. ET).