Government yields rise when traders deal with hawkish signs

This letter: Unselected

The decline in international cooperation led to a sharp rise in the US economy over the past three months on Monday, as businesses took part in the prospect of raising money for debt relief in the US and UK.

Yields over the 10-year U.S. Treasury, which moves differently from its price, rose slightly more than 1.5% for the first time since the end of June. By early morning, yields rose 0.02 percent to 1.482 percent.

UK domestic production for 10 years rose to 0.04% to 0.963%, a level that has not been sold on a regular basis since May 2019.

The move continues the alliance that began last week after large hawkish conventions across the Atlantic.

The US Federal Reserve says half of its lawmakers are expecting US prices to rise in 2022 customer prices rose by more than 5% for three consecutive months.

The Bank of England also warned that inflation in the UK could exceed 4 percent until next year, showing that it can raise borrowing rates from very low.

The researchers say the prospect of higher prices, as well as higher inflation, is fueling a resurgence of betting that spreads over a wide range of stocks that are taken out of the markets at a hot credit conference.

“Reflation marketing is not over,” said Peter Chatwell, head of social media at Mizuho. “It seems that this shock is not just temporary as everyone thinks, so if you are a big bank you have to set the right standards.”

The stock market in Wall Street and Europe was shaken, at the same time, even the price of oil prices is raising electricity prices.

The Stoxx Europe 600 sold explicitly, with an increase of more than 2.5 percent of the electricity supply failing to outweigh the technical and financial losses that medical stocks account for he may be upset in anticipation of high interest rates.

Wall Street chip-chip share index index for Wall Street was down 0.3%, while Nasdaq Composite technical index fell 0.7%.

S&P is up 18% in 2021 while Stoxx is up 16%. Advertisers are looking at the end of the simple gains, driven by monetary interest and economic recovery in the US from Covid-19, while central banks are moving to reduce aid.

“Central banks are just turning up a bit,” said Grace Peters, chief of European finance solutions at JPMorgan State Bank.

“But we are in a market that is struggling with itself,” he added, referring to “buying ideas”, in which traders responded to the recent market by selling what they had.

Brent crude increased 1.9% to $ 79.6 a barrel on Monday, the highest since October 2018. The global oil price has gone up about 9% this month after forming the Opec prediction demand for goods next year may be small beyond 2019 milingo.

The US impact has been recurring reduced and the devastation of Hurricane Ida, while Europe’s gas shortages have boosted oil prices.

But the rise in oil prices has raised fears that central banks are increasing interest rates.

With bond markets that could be heavily pressured by interest rates and anticipating rising prices, Peters added, “corporations feel like a safe haven for themselves”.

The dollar rate, which measures US currency against six others, has risen 0.1 percent. Sterling rose 0.2% against the dollar to $ 1.3712.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *