Stocks and Bonds Rally as Investors Await Key US Data

Global stocks and bonds rallied on Thursday ahead of key US economic data and Federal Reserve comments. The yen rose significantly, set for its biggest two-day gain in months.

Benchmark U.S. 10-year yields fell 3 basis points to 4.766 per cent, while German yields dropped 1 basis point to 3.363 per cent. Japanese government bond yields slid from historic peaks as global bonds recovered.

The dollar index declined 0.34 per cent to 99.25 due in part to the yen's rise. Oil prices edged lower, but remained around $95 a barrel, amidst uncertainty over military strikes between the US and Iran.

Investors await Friday's pivotal US payrolls report after disappointing private labour data for August. Fed Board Governor Christopher Waller is scheduled to speak, following New York Fed President John Williams' comments that rising long-term bond yields reflect a solid economy.