Emphasising just how big a move we are seeing by investors back into US Dollar dominated assets post FOMC, yields on US 10-year Treasury notes have surged over the past 48 hours to their highest level since 2011, offering up a rate of return of 2.47 percent. In another example of the flows which are occurring the US dollar has also been a major benefactor since Ben Bernanke said policy makers would end bond purchases by mid 2014 having rallied against 15 of its 16 major counterparties overnight. With signs that yields throughout the US are starting to normalise there has also been a noted move out of equity markets highlighting just how important US monetary policy remains for broader financial markets. Racing to overnight highs of 98.276 the US dollar opens around 1 percent higher against the Japanese Yen this morning at a rate of 97.271. Meanwhile across in Europe, despite a string of PMI readings which beat forecast, signs of an improved manufacturing backdrop was not enough to save the Euro from a rampaging Greenback as it opens weaker by comparison this morning at rate of 1.3220.
Posted on: Fri, 21 Jun 2013 01:08:52 +0000
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