U.S. Interest Rates Rise
Treasury Bonds fell a full point, or over $1,000 per contract, to post a 1-1/2 month low and low settlement, as long-term U.S. interest rates jumped sharply today.
The dollar dutifully turned higher against the Euro and Aussie today, having already turned higher against the yen 3 week’s ago and the Pound just last Friday.
Today’s Greenback rally was strong enough to lift the U.S. currency above the previous weeks high.
From an economic perspective the big question is where is the money that is leaving U.S. Treasuries headed, other than cash greenbacks, given that most asset classes ended sharply lower today?
Jay Norris
www.trading-u.com
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NO. It just the profit taking period I think. There is no WAY the USA going to hike the rate until end of this year. REASON is USA is still under a crtical in terms of unemployment and lack of jobs for thier own citizen. UNLESS the NFP shows a sudden big amount of rise of Jobs data, then I would say there will be a reversal for every USD pair. But taking a consideration that it is end of the year, there will be no hike rate. IF YES, most probably only can expect a little. Think about this, Which country first cut rate is the one first hike example its Australia, New Zealand etc, so it is ‘FIRST CUT AND FIRST HIKE RULE’..Its that simple. The Crude oil is getting higher and higher. How can USD can hike the rate unless thier economic data is okay then I definitely agree.
Hi Yanni,
Thanks for your thoughts. US Treasuries are a publicly traded market. The move up and down based on supply and demand. The US Treasury and fed can effect price for sure through open market operations, however the market can and does move up an down independant of Fed policy. The chart I’m showing is the 30-year Treasury, or long-term Goverment debt; while the Fed and Treasury exet more control over what’s happening on the short end, or more specifically the Fed Fund rate.