U.S.10 Yield rebound - Dollar Slips
Treasury yields rebound after weak 20-year bond auction
Yields on U.S. Treasuries rebounded for a second day on Wednesday, with a sale of 20-year government debt on the weak side, as fears of new COVID-19 lockdowns eased and a rally in equity markets suggested renewed optimism about a robust economic recovery.
The Treasury sold $24 billion of 20-year bonds to yield 1.890%, which was more than one full basis point higher than the yield at the bidding deadline and a bit weak, said Lou Brien, market strategist at DRW Trading.
The yield on 10-year Treasury notes was up 8.8 basis points to 1.297%, after briefly crossing above 1.3% earlier in trading.
The yield on the 30-year Treasury bond was up 7.4 basis points to 1.943%.
U.S. dollar slips as risk sentiment picks up, but keeps positive outlook
The safe-haven dollar on Wednesday pulled back from more than three-month highs as risk appetite made a comeback with stocks higher, although investors remained cautious amid inflation fears and concerns about the highly-contagious coronavirus variant.
Another safe haven, the Japanese yen, was also down against the dollar, as risk aversion eased.
The Delta variant of the coronavirus, which has caused a surge in infections worldwide, rose to the top of investor concerns along with inflation this week, prompting global stocks to drop sharply on Monday. European equity markets though picked up on Wednesday and Wall Street shares rose as well.
In afternoon New York trading, the dollar index, a measure of its value against six major currencies fell 0.2% to 92.755. On Tuesday, the index hit a more than three-month high.
Market participants though remained bullish on the dollar’s outlook, at least over the next few months.
Against the yen, the dollar rose 0.4% to 110.26.
The euro rose 0.2% versus the dollar to $1.1797.
In cryptocurrencies, bitcoin rose back above $30,000, having dipped below this key level for the first time in a month on Tuesday. It last traded up 7.4% at $31,991, while ether surged more than 10% to $1,971.79.92.
Reference: CNBC, Reuters
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