Stocks, the dollar and yields increase as monetary policy stays in focus
New York — Wall Street hit new records on strong earnings and the dollar extended a winning streak on Wednesday, boosted by rising treasury yields as investors focused on monetary policy. US treasury yields hit years-long highs and the difference in yield between US five-year and 30-year treasuries fell to the lowest since November 2007, as expectations for tighter global monetary policy pushed investors to sell shorter-dated treasuries. "The general tone from Fed speakers this week has been more on the hawkish side," said Subadra Rajappa, head of US rates strategy at Societe Generale. "That and the global removal of accommodation is something markets have noticed." Rajappa said US yields were rising in concert with European government bonds on expectations the European Central Bank, could signal a rollback of monetary stimulus on Thursday. On Wall Street, the S&P 500 was boosted by strong earnings from heavyweight IBM, which helped the Dow Jones Industrial Average open above 23,000...
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