Fundamental Overview
On Monday, the US Dollar experienced a significant drop as sellers took over after a brief dip on Friday. This happened as the US Treasury bond yields decreased across the curve. The 10-year US Treasury bond yields fell by eight basis points, marking the largest single-day decline since March. Additionally, the 10-year US rates dropped below the 3.50% level once again.
The markets have reassessed their expectations for a potential rate hike by the US Federal Reserve (Fed). It is anticipated that the Fed will take a break after the 25 basis points hike in May. There are indications that the central bank may reduce rates in July, which would result in the year ending below 4.50%. Additionally, concerns surrounding the ongoing drama over the US debt ceiling have led to investors seeking safe haven in US government bonds. This has led to a decline in US Treasury bond yields and the US Dollar.
On Monday, the US Dollar experienced a significant drop as sellers took over after a brief dip on Friday. This happened as the US Treasury bond yields decreased across the curve. The 10-year US Treasury bond yields fell by eight basis points, marking the largest single-day decline since March. Additionally, the 10-year US rates dropped below the 3.50% level once again.
The markets have reassessed their expectations for a potential rate hike by the US Federal Reserve (Fed). It is anticipated that the Fed will take a break after the 25 basis points hike in May. There are indications that the central bank may reduce rates in July, which would result in the year ending below 4.50%. Additionally, concerns surrounding the ongoing drama over the US debt ceiling have led to investors seeking safe haven in US government bonds. This has led to a decline in US Treasury bond yields and the US Dollar.
Trade closed: stop reached
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.