The US 10-year government bond yield rose to 4.802%, the DXY (US Dollar Index) fell 0.2% to 98.989, and the Japanese Yen strengthened against the US Dollar to a six-month high of 152.89.
The US 10-year government bond yield rose to 4.802%, the DXY (US Dollar Index) fell 0.2% to 98.989, and the Japanese Yen strengthened against the US Dollar to a six-month high of 152.89. The rise in US Treasury yields was mainly driven by higher oil prices and recent stronger-than-expected employment data, leading to increased market expectations for an interest rate hike next week. Danske Bank analysts believe that the current market pricing for a rate hike versus no change (with probabilities being close) is reasonable, and they expect the Federal Reserve to implement two more rate hikes in December and March next year. The decline in the DXY was primarily due to the continued strengthening of the Japanese Yen, which earlier touched 152.89 against the US Dollar, marking a six-month high and its fifth consecutive trading day of gains.
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