The treasury bonds American grew 4% For the first time since 2010, waiting for a new rate hike by United States Federal Reservewhich was modified last September 21 to the scope 3% to 3.25%. Given continued inflation, new highs are expected. The 10-year bond yield was 4% and the 2-year bond yield was 4.3%.
increase in Interest rates reignite recession fears And attracted interest in the sovereign bonds of countries. “It’s a combination of adverse impact from the UK, where sovereign bond yields are up. This has extended to other profit margin discount bond markets, so there is a bit of a rebound effect,” he said. Moh Seong SimA currency strategist at the Bank of Singapore in an interview with Reuters.
In parallel, other currencies also show their own dynamics: yuan Falls to 14-year lows and falls against the dollar being placed 0.80% and touches 7.2354. China’s central bank has asked banks to return to the currency peg they abandoned two years ago.
The fairy get hurt too back 1% until reaching US dollar .0627 and approaching him Historic lows of $1.0327. The depreciation of the pound was driven by the measures income Advertised in the UK Lower taxes and increase debt. However, the Bank of England will wait for its November economic policy meeting to make a decision on the interest rate. Both the International Monetary Fund and Moody’s have warned the British government against changing its policy due to its impact on its currency.
“In the short term, I think the British pound will remain very weak,” he said. Carol Kong“It is basically a crisis of confidence. It will be up to the British government to solve this, rather than the Bank of England,” senior coordinator for international economics and currency strategy at the Commonwealth Bank of Australia told Reuters, adding:
The euro It is also declining due to the strength of the dollar and falls 0.04% and up to 0.9586 and back to her 20-year low at 0.9528. And renewed gas shortages in the region with the collapse of the Russian gas pipeline, which was still operating nord stream 2, Increases fears of recession due to lack of supply. Added to this scenario is European Central Bank He renewed his determination to raise interest rates again to control inflation.
The Australian dollar For its part, it fell 0.5 percent to 0.642. The Japanese Yen It is still close to its lower levels and stands at 144.69, even after the intervention of the Bank of Japan.