US dollar takes another leg lower as bonds join in


If there was going to be a turnaround today, here’s how I imagined it would go:

  1. Stocks would get wiped out
  2. Bond yields would jump
  3. A big would slowly appear for bonds because 4% 10s and 4.5% 2s are attractive
  4. The bid in bonds would turn stocks

But that’s not how it happened. The bid in stocks came first and and that reversed the US dollar gain. Bond yields held up.

Or at least they did until now. US 10-year yields peaked at 4.08% and are now down to 3.90%. Thirty-year yields are down 0.3 bps on the day to 3.88% on the day despite a poor auction.

Falling yields are now endorsing the equity prices move and giving it another leg, along with USD selling. The S&P 500 is up 2.4% (and 5% above the lows) while the euro has now risen above 0.9800.

Now some of this is mixed in with what’s happening in the gilt market. That turned around today for reasons that are totally unclear, especially with Truss’ team denying a u-turn on corporate tax cuts.

In any case, the power of this move has me feeling uneasy.



Source link

Related articles

BW Vitality contracts Deepsea Mira rig to drill offshore Namibia

Picture: Odfjell  BW Vitality, along with NAMCOR E&P, has contracted Odfjell's Deepsea Mira semisubmersible...

China’s Kuaishou staff accused in $20M Bitcoin laundering scheme

Authorities in Beijing’s Haidian District have reportedly uncovered a Bitcoin laundering operation involving roughly 140 million yuan (round $20 million) allegedly stolen by staff of Kuaishou, a number one Chinese language short-form...

The Weekly Notable Startup Funding Report: 7/28/25 – AlleyWatch

The Weekly Notable Startup Funding Report takes us on a visit throughout varied ecosystems within the US, highlighting a few of the notable funding exercise within the varied markets that we observe. The...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com