Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Dollar Sidelined, Krona Stabilizes, Rates Firm

Friday, October 28, 2016 6:50
% of readers think this story is Fact. Add your two cents.

B4INREMOTE-aHR0cHM6Ly8yLmJwLmJsb2dzcG90LmNvbS8tR19wd1EwdnhIb1kvV0JNVnJtXzVFbEkvQUFBQUFBQUFXR00vNHkzbGszUlp3VWMzbTFpdzdiRFpncFI3enh5NFlzcXdBQ0xjQi9zNDAwL2ludGVyZXN0LmpwZw== / by Marc Chandler / October 28, 2016

The main development here in the last full week of October is the sharp rise in bond yields. US 10-year yields rose nine bp this week coming into today’s session, which features the first look at Q3 GDP. The two-year yield is up four bp. European 10-year benchmark yields mostly rose 11-17 bp. UK Gilts were are the upper end of that range. Two-year yields are 3-5 bp higher.
The odds of a Fed hike in December has risen this week and depending on precise assumptions about where Fed funds will trade, have risen around five percentage points to be a little over 70%. This does not seem to adequately explain the rising long end yields.   We anticipate that a Fed hike would flatten the curve as has often been the case in monetary tightening cycles, and was dubbed the Greenspan conundrum in the last cycle in the early noughts.
Equity markets were fairly resilient to the backing up of interest rates though most major equity markets moved lower over the course of the week.  Losses were minor.  The UK appears to be the worst of major markets, with the FTSE 250 off a little less than 2% before today’s loss brings it closer to 2.8%.  Enjoying a weaker yen, the Nikkei gained 1.5% for the week, with a third coming today.  Despite today’s  0.75%-0.85% loss today, the Italy and Spain are eking out minor equity gains.
The US dollar is mostly softer today, but on the week it has edged up against most of the major currencies. The euro is the main exception.  A little over $1.0900, the single currency is about 0.25% for the week.  The yen is the weakest of the majors, off 1.4% this week.  After moving above JPY105 yesterday, the dollar remained above it in Asia and Europe today.  The Swedish krona has stabilized after yesterday’s (exaggerated ?) shellacking.  Its 0.5% gain today, leave it off by 1.3% for the week.


The post Dollar Sidelined, Krona Stabilizes, Rates Firm appeared first on Silver For The People.


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative



Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.