Investors ‘take opportunity’ to buy safe haven assets, says Capital.com’s Kyle Rodda | ABC NEWS
The debt-fuelled AI boom sent investors rotating out of US stocks and into government bonds. The tech trade has wobbled this week on worries about competition in the chip maker sector and risks to profitability for the big players. The US 10-year Treasury yield slipped to 5.09% on Friday, down from a recent high of 5.3%. Capital.com’s Kyle Rodda says that was a quick move down in yields. But he says, the structural issues driving up yields haven’t gone away, so it’s unclear if the safe haven buying will remain. “There are buyers out there for these bonds at the right price and that’s ultimately supported them. But again we’ll have to see where the dust settles,” he said.
Kyle Rodda says more broadly global markets are likely to be in for a long period of volatility. He says the themes to watch that may determine market moves are US interest rate expectations with December in play, and positioning for the next round of US tech earnings, which are expected to deliver another quarter of extraordinary growth. Kyle Rodda also highlights the persistent uncertainty around geopolitics as a factor to consider. He spoke to Alicia Barry.
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