Should We Keep an Eye on the Yield on 30-Year U.S. Treasuries?
13.05.2021
- U.S. 30-Year Treasury Auction
- A Strong U.S. Dollar
Yesterday, U.S. stock prices fell sharply, with the S&P 500 closing at 4,063 points, down 2.14% from the previous day.Investors were unsettled by the rise in the U.S. 10-year Treasury yield, which briefly climbed to 1.69%, approaching the 1.7% mark. Additionally, the U.S. Consumer Price Index (CPI) for April, released yesterday, showed a 4.2% increase—the highest rate since September 2008—with rising gasoline prices standing out in particular.
In the foreign exchange market, the GBP/JPY pair, which has been trending higher, rose further during yesterday’s U.S. trading session, touching 154.4. There has been no pullback during today’s Asian trading session, and the pair is trading around 154.2. The GBP/USD pair is falling under pressure from the strength of the U.S. dollar and is currently trading around 1.406.
No particularly notable economic indicators are scheduled for release today during European trading hours. Once U.S. trading hours begin, the schedule includes remarks by Bank of England Deputy Governor Kanrif at 21:00, U.S. initial jobless claims and the U.S. Producer Price Index at 21:30, and remarks by U.S. Federal Reserve’s Barkin at 23:00:Richmond Fed President, at 23:30: U.S. weekly natural gas inventories, at 24:00: remarks by Canadian BOC Governor McClem, at 25:00: remarks by UKRemarks by Bank of England Governor Bailey; at 26:00, a U.S. 30-year Treasury auction and remarks by Federal Reserve Governor Waller; and at 29:00, remarks by U.S. Federal Reserve Bank of St. Louis President Bullard are scheduled. While keeping an eye on today’s economic data releases during U.S. trading hours, I intend to continue monitoring price movements closely.
