Bond yields keep on rising, the USD follows
- Macro-economy
- March 5, 2021
Jerome Powell, the Fed chairman, repeated more or less word for word what Lael Brainard said previously, but markets expected something more specific pointing to possible intervention to cap the rise in bond yields. So, the US 10y surged higher and remains above 1.56% this morning. The move triggered another sharp downward correction in US equities, the Nasdaq especially (-2.1%). The USD strengthened, the USD index (the trade-weighted index) even breaking its 100-day average for the 1st time since May last year. The EUR/USD exchange rate is back to its lowest level of the year, near 1.1950. The US job report will be released today and the big stimulus package should be voted by the Senate during the week-end.
Share this news :
You might also read :
European gas prices were almost stable on the spot and the two front months yesterday as ongoing strong LNG sendouts and profit taking continued to…
July 8, 2021
Bond yields further down after the Fed Minutes
Much ado about nothing: the Fed minutes showed many Fed members getting more nervous about inflation and eager to discuss tapering bond purchases in order to react…
March 7, 2022
War in Ukraine set to cause major economic crisis
As Russian military pressure intensifies on Ukrainian cities, economic sanctions are being stepped up to bend Vladimir Putin. News that the US, Europe and Japan are considering…
Subscribe to our newsletter