The successful passage of the US stimulus bill dominated news this week. It was quite a result for the Biden presidency, especially as the full amount was passed and the final tweaks to the bill were very few. Key highlights include $400bn in payments to individuals, $350bn in aid to state and local governments, $226bn for schools and childcare, $163bn unemployment insurance and $109bn for public health.
Not surprisingly, 10-year bond yields began their upward climb. At the time of writing, the US 10-year yield had risen to 1.625%. It wasn’t alone either: the German, UK and Australian 10-year bonds are also up strongly.
The combination of a speedy vaccination programme and new round of payments to households (as soon as next week) sets in place the next phase of bond yield increases. Year-end forecasts for US 10-year yields have been at 2% at the top end. We are not far away from it already. Furthermore, the passage of this Bill is just the first step. Still to follow are an Infrastructure Bill and the Green Bill, both of which could also be significant.
Skybound Wealth Management Limited FF2, MBP3, Meadowhall Business Park, Carbrook Hall Road, Sheffield, S9 2EQ
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
The guidance and/or advice contained within this website are subject to the UK regulatory regime, and are therefore targeted at consumers based in the UK. Skybound Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority. Registered Office - MBP3, Meadowhall Business Park, Carbrook Hall Road, Sheffield, S9 2EQ. Registered Number 04479650, England. Financial Services Register Number 217994.
The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK. The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk. Neither Skybound Wealth Management Ltd nor its representatives can be held responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.