Category: Daily blog

Euro remains on the back foot

Friday’s softer than expected US jobs report provided only fleeting relief for EURUSD, with the single currency under pressure again at the start of this week having lost a good deal of ground last week amid tensions in Euro area bond markets. It has fallen to a circa 17-month low of around $1.1175 against the […]

Upheaval in Euro area bond markets

There was a flight to the ‘safety’ of German bonds yesterday amid a sell-off in French and Italian bond markets, with yields in the latter spiking higher and spreads over Germany widening out sharply. European equity markets also came under pressure, underperforming the US by some distance, while the euro lost ground across the board, […]

A torrid month for bond markets

September proved to be a torrid month for government bond markets. Yields backed up sharply amid a jump in energy prices and an increase in actual and expected central bank interest rates, with benchmark US 10-year yields rising by about 55bps and equivalent UK and German yields up around 35bps and 25bps respectively. The increase […]

Dovish “Fedspeak” dents dollar

The dollar was on the front foot for much of yesterday’s session notwithstanding some softer than expected economic data out of the US, including a sharp fall in consumer confidence this month. The euro traded down to a new 2026 to date low of just shy of $1.13, while sterling fell to an intra-day low […]

Dollar continues to nudge higher

Government bonds remained under pressure amid rising oil prices with yields rising further across the main markets – the best that can be said is they finished off their highs of the day – while the dollar continued to nudge higher in this environment. The euro and sterling are trading at around $1.1350 and $1.3230 […]

Bond markets remain under pressure

Oil prices are moving higher this morning – Brent crude is up to around $107 per barrel – after Trump publicly rejected an offer from Iran that would have temporarily “reopened” the Strait of Hormuz. This will keep the pressure on bond yields, which backed up quite sharply last week notwithstanding a respite of sorts […]

US 10-year bond yields reach 5.20%

Government bond markets remained under pressure yesterday as yields rose further – albeit this was mostly concentrated at the long-end of curves – with the benchmark US 10-year  yield climbing to its highest level (5.20%) since 2007. In FX, the dollar remained in the ascendency, nudging higher again, though the euro and sterling are both […]

Bond yields surge

A move in oil prices back above $100 per barrel and much stronger than expected Purchasing Managers’ survey data in the US – suggesting the economy is expanding at its fastest pace in over 5 years – resulted in a pronounced hardening of central bank rate hike expectations and a surge in government bond yields. […]

Another day, another (firmer) dollar

The dollar continues to advance on the FX markets and has now gained just over 1% since last Wednesday’s Fed interest rate hike, which has been the clear catalyst for its move higher in the intervening period. The euro and sterling are currently trading at around $1.1425 and $1.3315 against the US currency respectively, leaving […]

Dollar maintaining its firmer tone

A fall in oil prices – Brent crude dipped below $100 per barrel for a time – contributed to a decent rally in bond and equity markets. Lower oil prices did nothing to dent the dollar though, which is maintaining the firmer tone it’s had since last week’s Fed interest rate hike. That said, there’s […]