Breaking News
0

US Bond Yields Make Three-Year High

By William OLoughlinMarket OverviewJan 22, 2018 09:44
au.investing.com/analysis/us-bond-yields-make-threeyear-high-200197210
US Bond Yields Make Three-Year High
By William OLoughlin   |  Jan 22, 2018 09:44
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Originally published by Rivkin Securities

US stocks closed modestly higher on Friday with the Dow Jones Industrial Average recovering later in the session to move from a small loss to a small gain. Markets shrugged off the possibility (at the time) that a government shutdown was imminent which has since occurred. If the opposing US political parties don’t come to an agreement before Monday morning, many government workers will be told not to come to work because the funding isn’t available to pay them.

US bond prices continued their upward trend and have now broken through the high point from early in 2017 to reach a new three-year high. Despite the fact that Australian interest rates are still at record lows, Australian bond yields have been following US yields higher. Although the Australian 10-year bond yield hasn’t yet surpassed the March 2017 high, it is very close. Rising government bond yields will inevitably put upward pressure on interest rates elsewhere in the economy.

The US dollar had a small rally on Friday, closing up 0.21%, although the longer-term trend is still clearly down. The Australian dollar has been climbing on the back of this weakness and is currently very close to a multi-year high, currently sitting right on US$0.80 having climbed $0.05 in the last six weeks.

S&P/ASX 200 Futures are up 30 points this morning, predicting a higher open for the index this morning.

Data Releases:

- No Significant Data

US Bond Yields Make Three-Year High
 
US Bond Yields Make Three-Year High

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email