Dollar Surges in September, Leaving Euro Lagging
Investors priced in more Fed tightening as 10-year Treasury yields hit their highest since 2007 and the euro fell to a three-month low.
- The U.S. dollar strengthened in September, advancing nearly 2% against the euro as The Bloomberg Dollar Spot Index rose about 2% this month, nearing multi-month highs on Wednesday.
- Rising Treasury yields, with the two-year benchmark closing in on 5%, bolstered the greenback as markets increased expectations for a Federal Reserve rate hike in October to more than 70%.
- The euro declined 2.6% this month, pressured by persistent energy concerns and political instability in France, where the premium investors demand over German debt exceeded 110 basis points.
- Bank of Nassau 1982 chief economist Win Thin said, "This is broad-based dollar strength on rising yields," while Morgan Stanley analysts expect the greenback to maintain dominance through year-end.
- Investors are tracking the Personal Consumption Expenditures index due Wednesday and nonfarm payrolls on Friday, which serve as critical hurdles for confirming the dollar's momentum in coming weeks.
239 Articles
239 Articles
The head of the Bank of France, Emmanuel Mulen, warned of the need to "do everything" to prevent the debt crisis by the 2027 elections, against the backdrop of a surge in French bonds, writes Politico. The income of the ten-year French national bonds has almost reached 5%, and the distribution to German papers since mid-September has risen from 0.55 to 1.45 percentage points – tops since 2012, which has led market participants to talk about the …
French government bond yields have been at the highest level since 2002. The country has no force for urgent reforms. Nevertheless, it is vital that the ECB refrains from intervention.
Sydney Morning Herald
FROGS, not PIIGS, could spark the next global financial crisis
Bond investors have been searching for the weak points in the global economy, forcing government debt yields up around the world. In France, they have found a target.
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