GLOBAL MARKETS-Stocks rise, bonds sell off as investors bet on recovery

(Updates prices)
* The S&P 500 and the Dow hit all-time highs
* Bitcoin breaks above $50,000
* Government bond yields leap
* Oil prices close to 13-month highs, supported by Texas
cold snap

By Saqib Iqbal Ahmed
NEW YORK, Feb 16 (Reuters) - Wall Street joined a global
march propelling stock indexes to record highs on Tuesday, with
investors selling government bonds in a bet that COVID-19
vaccinations and U.S. stimulus will deliver a durable economic
recovery after a year of lockdowns.
Bitcoin BTC=BTSP added to the bullish mood, briefly
climbing above $50,000 for the first time, while prospects of
"reflation" - a boost in inflation from extraordinary fiscal
stimulus - pushed U.S. Treasury yields higher.
U.S. President Joe Biden will travel to Wisconsin on Tuesday
to press his case for a $1.9 trillion pandemic relief bill in
the political battleground state that helped secure his victory
in last year's presidential election. The MSCI's global stock index .MIWD00000PUS was about flat
at 685.05 after hitting a record high of 687.26 earlier in the
session. A positive close would mark the 12th consecutive day of
gains for the first time since January 2004.
On Wall Street, the Dow hit an all-time high on Tuesday,
while the S&P 500 and the Nasdaq retreated slightly from record
levels, as investors bet on more fiscal aid to lift the world's
biggest economy from a coronavirus-driven slump.
"The reflation trade continues to push equity markets across
all industries and multi-caps ... and this rally could continue
in the near-term," said Tony Bedikian, head of global markets at
Citizens Bank in Boston.
The Dow Jones Industrial Average .DJI rose 74.87 points,
or 0.24%, to 31,533.27, the S&P 500 .SPX gained 0.63 points,
or 0.02%, to 3,935.46 and the Nasdaq Composite .IXIC dropped
40.75 points, or 0.29%, to 14,054.73.
European shares ended about flat around a one-year peak on
Tuesday as a boost from major mining and bank stocks was
tempered by losses in most other sectors, with investors
remaining uncertain over a euro zone economic recovery.
The pan-European STOXX 600 index .STOXX finished down
0.06%.
The 10-year U.S. Treasury yield US10YT=RR neared 1.3% on
Tuesday and the yield curve steepened as expectations of
extended fiscal and monetary stimulus alongside hopes of an
economic upswing boosted the reflation trade. "The market has fully embraced the prospects of Biden's $1.9
trillion stimulus, and the accelerated vaccine rollout is
support of further bearish price action as well," Westpac
strategists told clients.
Bond yield curves - considered a reliable barometer of
growth expectations - have also steepened, with the gap between
two-year and 10-year U.S. notes now around 117 bps, the widest
since March 2017. US2US10=TWEB .
The U.S. dollar bounced off three-week lows as bullish
comments from a U.S. Federal Reserve official and upbeat
manufacturing data helped arouse investor risk appetite.
Against a basket of its rivals =USD , the greenback gained
0.213% to 90.526, after earlier falling to 90.117, its lowest
level since Jan. 26.
Bitcoin BTC=BTSP briefly soared above $50,000 to an
all-time high, adding steam to a rally fueled by signs that the
world's biggest cryptocurrency is gaining acceptance among
mainstream investors and companies. The cryptocurrency was last
up 1.5% at $48,673.09 Oil prices hovered near 13-month highs on Tuesday, supported
by a deep freeze in the U.S. South that shut wells and oil
refineries in Texas. Brent crude futures LCOc1 settled at $63.35 a barrel, up 5
cents or 0.08%, while U.S. crude oil futures CLc1 settled at
$60.05 a barrel, up 58 CENTS or 0.98%.
Spot gold XAU= was down 1.34% at $1,794.21 an ounce.
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World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Bitcoin crosses $50K https://tmsnrt.rs/2N3uDaA
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