Strong 10Y US state bonds keep boosting US dollar

Posted 25 April, 2018

US dollar has remained on the rise in Asia on Wednesday boosted by further strengthening of 10-year state bonds in the USA. 

The US Dollar index moved up to 90.85 Wednesday morning. 

Investors have mostly switched from the trade war issue to an increase in 10Y Treasuries in the USA as the tensions between the USA and China have somewhat softened lately. The state-bond yields have reportedly hit the 3% level, the peak recorded since early 2014. The increase is related to fears of higher-pace inflation and speculations about possible more aggressive interest rate revision in 2018, as news reports read.

For reference, the yield is a guideline for mortgage rates and other financial tools. Thus, high yields can push interest rates up and spendings down, putting pressure on the stock market.

The Australian dollar decreased to 0.7566 against the greenback even despite the market shutdown for Anzac Day. 
The US dollar-to-yen exchange rate has reached 109.23. The gap between 10Y state bonds of the USA and Japan peaked at 294 bp, the highest level since 2007.

Previous story

25 April, 2018 14:44

← China's Tianjin launches case on power theft under crypto mining

On Wednesday, law enforcement authorities of China's Tianjin confiscated 600 computers for bitcoin mining after receiving reports about extremely high power consumption. It has been already launched an investigation against 5 persons. According to the reports, one of the suspected has been already arrested by the police.

China's Tianjin launches case on power theft under crypto mining

Next story

24 April, 2018 16:46

CBI may not let local financial institutions deal with cryptos →

Iran's Central Bank in tandem with the major market regulator stated that local business might not handle cryptocurrencies. The authorities are concerned that the digital coins can be used for terrorist funding and money laundering activities. As a result, the Central Bank of Iran released the note to ban this technology for the financial sector...

CBI may not let local financial institutions deal with cryptos
Write a comment
 
Prove you’re not a bot + 5 = 12