Expectations of monetary tightening prevail in a context of high market volatility
After hesitating, the US bond market decided and 10-year yields fell to 1.33%, which may seem logical given the weakness of job creation in November…
Purchasing managers’ indices continue to be close or at historical highs in the manufacturing industry, pointing to strong growth in this sector. The small decline in the US ISM only shows that activity has ceased to accelerate in April. Bond yields are marginally down and the USD is rather stable: the EUR/USD exchange rate is trading in a narrow range around 1.2030.
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