Fed expectations pushed Treasury yields to new highs. The return on two-year notes soared to 3.51% overnight, hitting its highest level since late 2007, while that on benchmark 10-year paper advanced another 6 basis points to 3.20. %.
The euro falls 0.37% although it remains above parity with the dollar, at 1.10016 dollars, while the pound reaches a new minimum in two and a half years with a drop of 0.5% to 1, $15,545.
The Japanese yen fell to 139.69 per dollar earlier in the day, its lowest level since 1998, before paring losses. The dollar was up 0.24% at 139.3 yen.
“Even after hitting new records, the dollar’s strength has room to extend a bit further, buoyed by the global slowdown and the European energy crisis in particular,” analysts at Generali Insurance Asset Management said.
The yield on benchmark 10-year US Treasuries hit a two-month high on Tuesday at 3.219%. Japan’s yield curve control policy means the return on its 10-year bond is just 0.24%.
Bitcoin trades in line with risk sentiment, dipping slightly and trading a fraction above $20,000. This cryptocurrency also saw the effect of fears over interest rates in the month and lost 13% of its value in August.
Source: Ambito
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