Investors bet that maintaining resilience in the US economy means interest rates need to remain high On Tuesday, the US dollar index rose to a high in over five and a half months

06 Sep, 2023

Investors bet that maintaining resilience in the US economy means interest rates need to remain high On Tuesday, the US dollar index rose to a high in over five and a half months

Investors bet that maintaining resilience in the US economy means interest rates need to remain high

On Tuesday, the US dollar index rose to a high in over five and a half months

 

On Tuesday (September 5), before the release of the key economic data of this month and the Federal Reserve's interest rate decision, a few companies sold trillions of dollars of bonds to the market, leading to the decline of US treasury bond bonds. Due to rising oil prices exacerbating concerns about inflation, the US stock market fell and the US dollar hit its highest level since March. Gold fell to a one week low, while spot gold closed 0.7% lower at $1925.81 per ounce.

 

US bonds were hit, with the yield of 10-year treasury bond bonds approaching 4.3%. After the seasonal economic slowdown and the recent surge in U.S. stock treasury bond bond interest rates, at least 40 enterprises conducted financing activities in the global senior bond market on Tuesday. According to data compiled by Bloomberg, about half of these 40 companies choose to issue new bonds in the US market, totaling over $36 billion. This makes the US bond market the busiest market in terms of trading volume and daily supply, which is also the busiest trading day so far this year.

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