President Joe Biden said that The government’s swift actions on Sunday to ensure depositors can access their funds at SVB and Signature Bank should give Americans confidence that the US banking system is secure.
The Federal Reserve announced Sunday that it would make additional funds available through a new Term Bank Financing Program, which would offer loans of up to one year to depository institutions, backed by Treasury bonds and other assets these institutions own.
The dollar index, which measures the performance of the US currency against six other currencies, was down 0.46% as yields on two-year Treasury bonds plummeted.
The two-year note’s return sank 48.9 basis points to 4.099%, its biggest one-day drop since the 2008 financial crisis. It was headed for its biggest three-day decline since the collapse of the Black Monday 1987.
With speculation running rampant about how the Fed will conduct monetary policy and fight to control inflation, the focus is Tuesday’s release of Consumer Price Index (CPI) data.
Goldman Sachs said he no longer expects the Federal Reserve to raise rates at its meeting next week.
Safe-haven currencies such as the Japanese yen and Swiss franc benefited from the fallout from SVB. The yen strengthened 1.51% to 132.98 to the dollar, while the dollar fell 1.12% against the Swiss franc to 0.911.
Meanwhile, the euro was up 0.62% at $1.0709, near a one-month high of $1.0737 hit earlier, ahead of the European Central Bank’s policy meeting on Thursday.
Source: Ambito
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