Monday, February 7, 2011

Forex news Bloomberg:Because of fears of inflation jumped bond yields

Despite the rather cold start, but the market finally reacted to the data peyrolls, both strong enough to continue buying dollar. Interestingly, the Bucks showed a major growth in European currencies, especially the franc, after rising 1% to 0.9550. Euro dropped to 1.3550 at night, again driven by the forced closure of long positions. A cable fell to 1.6050 on Friday, although quite significantly rebounded in early trading in London up to 1.6150.

Restoring the dollar was supported by the growth of yield Treasuries. Ten-year yield climbed to a 12 bp from Friday to 3.68%, a 10-month high. For the week yield rose by 30 points, but with the announcement of Ben-helicopter QE2 in November, the 10-year Treasuries have increased yield of 120 points! Yield German Bunds also increased, rising to 3.26, which is 115 bp above the August low. Yield similar to the British market was higher by 45 points since the beginning of the year, and rising to 100 bps up to 3.85% with a minimum in August. The jump in yields on bonds throughout the world reflects the growing concerns about inflation and more likely in the foreseeable future, need to raise rates. For example, on Thursday this week is going to the monetary committee, and there is no doubt that there will be a very lively debate around the need to raise rates. It is interesting that none of the thirty surveyed economists surveyed Blumerg, does not predict the rate hike committee this week.

Translate this page

Search This Blog