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The US 10-year Treasury yield attempts to stabilize on Thursday, edging higher to 4.672% at the time of writing after hitting a low of 4.635% on Wednesday. The move comes after Treasury yields fell sharply following the United States (US) Department of the Treasury’s surprise announcement regarding its long-dated debt buybacks.The Treasury announced on Wednesday that, starting September 9, it will double the size of its liquidity-support buyback operations for maturities ranging from 10 to 30 years, increasing them from $2 billion to at least $4 billion per operation. The announcement helped interrupt the recent surge in yields, which had…
USD/CAD extends its losses for the second successive day, trading around 1.3800 during the Asian hours on Thursday. The pair declines as the commodity-linked Canadian Dollar (CAD) receives support from improved oil prices.Crude oil prices have surged amid escalating Middle East tensions as negotiations between the United States and Iran remain stalled. The confrontation has expanded to the critical Strait of Hormuz waterway, though US President Donald Trump noted that oil shipments are still moving through the passage while leaving the door open for future negotiations with Tehran.Iran tensions keep Brent risk premium elevatedAccording to TD Securities, the geopolitical backdrop…
The U.S. dollar nursed steep losses on Thursday, hovering near three-month lows as investors digested measures announced by the U.S. Treasury Department to help calm the bond market that had seen long-end yields hit their highest since 2007.The dollar index, which measures the U.S. currency against six other units, was at 98.938, around its lowest level since mid-May. The euro was at $1.1676, perched at the highest level since late May.The U.S. Treasury unveiled plans to double liquidity support buyback operations for longer-dated bonds after a steep bond selloff pushed the 30-year Treasury yield to a 19-year high of 5.337%.…
The US Treasury Department said on Wednesday that it will buy back more of its longer-term bonds, in an effort to curb a sharp increase in borrowing costs, the Wall Street Journal reported.US Treasury announced that it would at least double the maximum size of its liquidity-support buyback operations for longer-dated nominal securities. The current maximum size of $2 billion per operation will be at least $4 billion per operation. The department disclosed that total US public debt had surpassed $40 trillion for the first time. It has now surged by a third in less than five years.Market reactionGold price attracts…
EUR/GBP trades on the front foot on Wednesday, pushing up to the vicinity of a two-week high near the 0.8570 region as the Euro holds firm against a softer British Pound (GBP). The pair has cleared its recent range after a run of green candles on the 4-hour chart.The move followed July inflation reports from both economies. UK headline Consumer Price Index (CPI) rose 2.9% over the year, a four-month high and up from 2.6% in June, matching forecasts. Core CPI held at 2.6%, a touch hotter than the 2.5% expected. But core services inflation, the gauge the Bank of…
National Bank of Canada’s (NBC) Angelo Katsoras argues that Canada’s push to diversify exports away from the United States (US) toward the European Union (EU) faces growing obstacles as EU industrial policy turns more protectionist. He highlights that EU procurement rules, subsidies, tariffs and local content requirements increasingly favour European manufacturing, forcing Canadian firms to consider local production in Europe despite CETA’s tariff benefits.EU rules complicate Canada’s exports”The fact that the EU is increasingly using procurement rules, subsidies, tariffs and local content requirements to encourage more manufacturing within Europe could pose a significant challenge for Canadian exporters. Even with the…
Persistent market interventions by the RBI over the last 10 days have made traders wary of initiating bearish wagers on the rupee as it nears the key psychological level of 96 per dollar. | Photo Credit: iStockphoto The rupee fell to its weakest level since late July on Wednesday, due to elevated oil prices and sustained dollar demand from companies, but likely intervention by the central bank kept a lid on its losses.The Asian currency closed at 95.7525 per dollar, against 95.68 in the previous session.Persistent market interventions by the Reserve Bank of India over the last 10 days have…
The Swiss Franc (CHF) appreciates moderately on Wednesday, as the US Dollar (USD) pulls back against major peers, with investors bracing for the release of the minutes of July’s Federal Reserve (Fed) monetary policy meeting, due later on the day. The USD/CHF pair has retreated to levels nearing 0.8100, from 0.8130 on Tuesday, although it remains well above August’s trading floor, in the 0.8040 area.Market volatility remains subdued on Wednesday’s European session, with a mild risk-off mood prevailing, amid the high level of uncertainty surrounding the Middle East conflict and with Oil prices on the rise, which is keeping the…
Mhe Indian rupee was nearly flat in early trade on Wednesday, withstanding strain from higher oil prices and a global bond rout, as the Reserve Bank of India’s persistent interventions anchored the unit and sharply lowered volatility expectations.Rupee holds near ₹95.7 amid oil, bond yield pressuresThe rupee was at 95.7250 per dollar, as 10.48 a.m. IST, down marginally from Tuesday’s close of 95.68.The muted decline came even as oil prices continued to climb, knocking at their highest levels in three weeks as investors gauged conflicting messages from Tehran and Washington on whether the Strait of Hormuz, a key global energy…
The EUR/JPY cross trades in negative territory around 184.60 during the early European trading hours on Wednesday. The Japanese Yen (JPY) edges higher against the Euro (EUR) amid hawkish signals from the Bank of Japan (BoJ). Japan’s National Consumer Price Index (CPI) inflation report will be the highlight later on Friday. Growing speculation that the Bank of Japan may raise interest rates in the coming months provides some support to the JPY. Reuters in a report Friday said the Japanese central bank is considering a rate hike as soon as September. Overnight index swaps are pricing in about an 80% odds…