The course of trading so far on Wednesday, November 8, 2023, in the bond market with US government bonds has shown that their yields are still increasing, if only slightly on this day. According to analysts of brokerage companies and financial strategists of the bond market, the yields of US government bonds (US Bonds) have increased despite the recent decision of the US central bankers, when the Federal Open Market Committee of the Central Bank of the United States, FOMC FED (Federal Open Market Committee Federal Reserve System) left the interest rate for the time being rates unchanged in the current range of 5.25 to 5.50% per annum.
Currently, during the trading day of November 8, 2023, at approximately 11:00 CET, US government bond yields in most bond titles were moving in a bull market trading trend, and for example, the 10-year US government bond (US –YR Bond) reported a yield of in the amount of 4.579% p.a. with a daily growth of + 0.008% of its yield, in contrast, the US 30-YR Bond showed a daily decrease of – 0.025% p.a. with a yield of 4.71% per annum. Short-term and medium-term US bonds then showed slightly higher growth on the indicated day and time, and for example the three-year government bond US 3-YR Bond increased by +0.047% within the daily departures with a yield of 5.49% per year.
These gains in the US Treasury bond market were achieved when the exchange value of the US dollar (USD) strengthened and according to the US Dollar Currency Index (DXY) the value of the USD was at a point level of USD 105.83 points with the previous daily by +0.28% of the point value according to this index, which compares the value of the USD with another six major world currencies. In this situation, the so-called global currency pair of the single European currency Euro (EUR) and the US dollar, as the main commodity currency on the forex market, moves in a mutual exchange rate at a value of 1.066 USD per EUR with a daily decrease of EUR by -0.327% so far exchange rate against the USD. The initial weakening of the US dollar (USD) as an immediate reaction of investors and financial market traders to the decision of the FOMC FE that it will not raise rates, and as the current market situation shows, the fears of analysts about the continued decline in the exchange value of the USD have not come true.
A recession driven by higher interest rates has been a major concern among investors since the Federal Reserve System began a rate-hiking cycle that began in early 2022. However, the economy has so far appeared resilient, and the central bank upgraded its assessment of economic growth as part of its latest monetary policy meeting FOMC Fed last week. Still, investors were hopeful that US central bankers were done raising rates, especially as recent jobs data suggested a cooling labor market. However, the head of the FED, Mr. Jerome Powell, indicated last week at the press conference after the end of the two-day FOMC FED meeting that the possibility of raising rates still remains on the table, and that the central bank has not yet discussed lowering rates. Mr. Powell and other representatives of the central bank of the US Federal Reserve System (FED) should make their comments this 45th week of 2023, while the head of the FED, Mr. Jerome Powell, should speak as today, Wednesday, November 8. as well as tomorrow, Thursday 9 November 2023.