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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