Bond yields continue to rise. China reassures on the housing market

The US 10y yield reached 1.54% this morning, its highest level since June. The market is gradually integrating the prospect of monetary tightening, not only by the Fed, but by all central banks in the relatively near future. The Governor of the Bank of England has not ruled out a possible interest rate rise before the end of the year.

The Chinese authorities are trying to reassure the market (and succeeding for the moment) by promising to ensure “a healthy property market” that “protects the rights of homeowners”, which means they will oversee the downfall of property developer Evergrande. This does not tell us anything about the long-term impact of the property downturn on growth, and all indications are that it will be significant.

Good news in Europe this morning with the rise in household confidence in France and Germany, after a summer under the threat of the Delta variant. This does not prevent the euro from falling, as do all currencies, against the US dollar: the EUR/USD exchange rate is close to its lowest level of the year (1.1664) reached in August.

Energyscan economis news

Some interesting figures today from the US, starting with consumer confidence. Of particular interest are inflation expectations. House prices are also expected to rise by more than 20% yoy, which should not calm the bond market.

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

October 18, 2021

EUAs retreated alongside the gas market

Despite a strong retreat of clean gas costs, the European power spot prices rose towards 200€/MWh for today, buoyed by forecasts of rather weak wind…
June 3, 2021

Oil prices remain under upward pressure

Brent prices reached a new two-year high level overnight near $72/b, while WTI prices touched $69.4/b. The market remains in a bullish mood after the…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?  Sign up here!