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CCTV Script 15/09/16

This is the script of CNBC's news report for China's CCTV on September 15, Thursday.

Welcome to CNBC Business Daily, I'm Qian Chen.

Bond yields have been suppressed for years thanks to central bank policy.

But recent speculation about a possible Federal Reserve interest rate rise, as well as disappointing news from the Bank of Japan and European Central Bank, have pushed down bond prices, which causes yields to rise.

"We have seen a further steepening of various yield curves, which in itself is not necessarily bearish if the cause is higher inflation and growth expectations. However, that is not the case and this move is being caused by the Bank of Japan looking to change the structure of its asset purchases, largely as a result of how poorly its asset purchase program has worked thus far," said Chris Weston, chief market strategist, in a note.

Gold prices rose on Wednesday and the dollar slipped against a basket of currencies and as the market waited for clues to the timing of interest rate rises in the United States.

Expectations the U.S. Federal Reserve will raise rates at next week's policy meeting have receded, putting pressure on the U.S. currency which when it falls makes gold cheaper for holders of other currencies.

"It's all about the opportunity cost of holding gold. Higher interest rates make it more expensive to hold gold, which has zero yield," said Natixis analyst Bernard Dahdah.

Markets are pricing in just a 15 percent chance that U.S. interest rates will be hiked this month, according to CME FedWatch. Many now expect a rise in December after the Presidential election.

Goldman Sachs puts the chances of a rate hike in December at 40 percent.

As investors and hedge funds are adjusting their portfolio, all eyes are still on the meetings of Fed and BOJ.

CNBC's Qian Chen, reporting from Singapore.

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