News

Dollar weaker as Bond yields rise

17/05/2018

The yields on the benchmark U.S. 10 year bond yesterday rose to 3.12%, a level not seen since 2011. The rally in bond yields is a cause for concern among investors in Dollar Equities & cash, weighing down FX & equity markets. The old adage, “rate reflects risk” is making people nervous because, on the face of it, there is no substantive economic reason for the US bond yields to benefit this much. However, the markets are rarely foolish and whether this apparent diversification of risk is simply a blip rather than an ominous precursor of wider alarm remains to be seen. Today’s Initial Jobless figure (due out at 08:30 EST) will be studied carefully, and any deviation from the expected 215k expectation could be met with short-term volatility, particularly in FX.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July

31/07/2019

Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019

15/07/2019

Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally

10/07/2019

Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower

24/05/2019

Dollar Yen breaks lower

Read more