Bond Yields Jump on Trump's Ceasefire Comments

Dow Jones07-08

Global bond yields are jumping on the back of higher oil prices this morning after President Trump said he thinks the ceasefire with Iran is "over."

-- European bonds saw some of the biggest moves, with benchmark 10-year bond yields in the U.K., France and Italy rising more than 10 basis points.

-- U.S. Treasury yields also rose, though more modestly: both the 10-year yield and the 2-year yield (which more closely reflects short-term interest rate expectations) advanced about 3 basis points.

Treasury yields have moved closely with oil prices since the war started, as traders fear higher energy costs could add to inflationary pressures.

U.S. interest-rate expectations nudged slightly higher after Trump's comments, with traders seeing a nearly 36% chance that the Fed lifts rates this month, versus a 27% chance yesterday.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment