The development of trading on the bond market with US government bonds referred to as US Bonds during this week, which is marked as the 36th in the calendar of this year 2023, was recorded in comparison with the previous state. that the yields of these US bonds have again decreased slightly. According to economic correspondents in connection with analysts of brokerage companies and financial strategists of the bond market, behind this situation is the current investor sentiment, when investors are very intensively considering further developments and especially the effect of interest rates in the USA on these bonds.
The yields of US government bonds recorded a further decrease already on Thursday, September 7, 2023, when their yields fell slightly again. According to economic correspondents, investors have thus assessed the possibility of further rate increases after a series of stronger-than-expected economic data, and in most cases assessed, according to financial strategists of the bond market, they have come to believe that the situation is highly likely without further interest rate increases by the central bankers of the United States of the United States through the FOMC FED (Federal Open Market Committee Federal Reserve System) and at least until the end of this year 2023. The yield from the 10-year US government bond was last traded on Thursday, September 7, 2023 at the value of its yield of 4.252% per annum , after falling nearly 4 basis points for the trading day. This reported trade also brought a drop in the yield of the two-year US government bond, when this daily drop was even by 8 basis points to a yield of 4.943% p.a. and at the same time the yield value at the beginning of this 36th week of 2023 exceeded the 5% level.
Currently, during the European morning of Friday, September 8, 2023, at approximately 7:51 CET, the 10-year US bond was trading on the bond market with a yield of 4.223% p.a. with a daily drop of -3.9 basis points so far. The 2-year US bond slowed down the dynamics of its yield decline during today’s trading day, however, during the European morning of Friday 9/8/2023, the daily decline of this bond was -2.5 basis points with its annual yield of 4.93%. These returns were achieved in a situation where during the European morning of Friday 9/8/2023 at the indicated time, the exchange value of the US dollar (USD), measured according to the dollar index DXY (US Dollar Currency Index), was at the point value of 104.8 USD points with a daily drop of -0.24% of the point value so far according to this index, which compares the value of the USD with the other six major world currencies. On the indicated day and time, the so-called global currency pair of the single European currency euro (EUR) and the US dollar (USD), as world reserve currencies, traded on the forex market at a mutual exchange rate of 1.072 USD per EUR with the previous daily strengthening of the EUR by + 0.21% exchange rate against USD.
Traders, investors and other bond market participants have now weighed in on a series of economic reports that signaled continued inflationary pressures and a tight labor market, further fueling concerns that the so-called Federal Reserve’s (FED) hiking cycle may not be completely over yet. These economic reports notably included indicators such as fewer jobless claims than expected and a higher-than-expected increase in wage costs in the second quarter of this year 2023. “Today’s jobless claims and wage bill report raise concerns about higher rates ,” said David Russell, global head of market strategy at TradeStation. “They may not put the September FOMC Fed meeting back in play for a hike, but they do increase the likelihood of a hawkish dot,” this expert added. Traders and investors will continue to watch the 10-year Treasury yield in particular, Mr. Russell said, adding that a break above the October peak could weigh heavily on stocks in particular. According to economic correspondents linked to investment strategists, the financial markets still value a 93% probability that the FOMC FED will leave interest rates unchanged at its meeting at the end of this month, i.e. September 2023.
