The returns of the United States Treasury bonds reached a maximum on Tuesday not seen since the first movements of the global financial crisis of 2007-2008, while the fear that the interest rates stay high for longer by shaking the risk assets worldwide and led to dollar to a maximum of 10 months.
The stock indices Asians and Europeans fell, and the US stocks They are preparing to follow the path, in a session in which crude oil prices also fell after the recent statements by the Federal Reserve authorities.
The performance ofs 10-year Treasury bonds rose to 4.566%, its highest level in 16 years, as the large number of US Treasury auctions scheduled for this week and fears of a US government shutdown further fueled suspicion.
Nervousness grows over US debt
The bond returns, that move inversely to prices and rise when a perceived increased risks Issuer-related rates remained high among euro zone sovereigns as the view remained that central banks would keep rates higher for longer.
The nervousness around public debt American is exacerbated by the efforts of the House of Representatives, controlled by Republicans, to advance this week on deep spending cuts, which have no chance of becoming law, but could trigger a partial government shutdown next Sunday.
Hundreds of thousands of federal workers They could be removed from their jobs and suspended public services If Congress is unable to finance the new fiscal year which starts on October 1st.
Dollar: what is the reaction of the currency
He dollar index, which measures the currency against the six major developed market pairs, including the euro and yenrose 0.2%, to 106.2, the highest level since November 2022, as the world’s largest economy continues to perform better.
The greenback’s strength against the yen, in particular, has kept traders on alert for the possibility of a intervention to prop up the Japanese currency, especially after Finance Minister Shunichi Suzuki said on Tuesday that no options were being ruled out.
The dollar remained about a maximum of 11 months of 148.97 yen, with 150 units per dollar seen by financial markets as a red line that would prompt Japanese authorities to act, as they did last year.
Meanwhile, gold fell slightly to $1,910.6 an ounce, prolonging its decline from last week’s $1,947, as bullion’s appeal dimmed in the shadow of the dollar’s steamroller.
He Petroleum remained weak on concerns that fuel demand would be weighed by major central banks keeping interest rates higher for longer even as supply is expected to be tight. Crude oil futures Brent fell 72 cents to $92.57 a barrel, while crude oil futures West Texas Intermediate from the United States fell 69 cents, to $89.99.
Source: Ambito
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