The 10-year US Government Bonds Yield Has Reached Highs Since 2011

Yesterday, the US dollar strengthened relative to the basket of major currencies against the 10-year US government bonds yield growth. The yield indicator reached a seven-year high of 3.09%. A report on the volume of retail sales turned out to be ambiguous, but this did not prevent the US currency to grow. The volume of retail sales in April increased by 0.3%, while experts expected a value of 0.4%. At the same time, the indicator in March was revised upwards to 0.8%. The US dollar index (#DX) showed significant growth yesterday and closed in the positive zone (+0.74%).

The euro and the British pound were under pressure yesterday. ZEW economic sentiment index in Germany counted to -8.2 instead of the forecasted value of -8.0. Weak reports on the UK labor market indicated that the Bank of England is unlikely to raise the interest rate this summer. The average wage level, taking into account premiums, slowed down to 2.6% instead of the forecasted value of 2.7%. The number of jobless claims rose to 31.2 thousand, while investors expected a value of 13.3 thousand.

The "black gold" prices are consolidating. Futures for the WTI crude oil are testing a mark of $71.00. At 17:30 (GMT+3:00), a report on the US crude oil inventories will be published.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock market: #SPY (-0.69%), #DIA (-0.79%), #QQQ (-1.11%).

At the moment, the 10-year US government bonds yield is at the level of 3.06-3.07%.

- Consumer price index in the Eurozone at 12:00 (GMT+3:00);
- Statistics on the real estate market in the US at 15:30 (GMT+3:00);
- The volume of industrial production in the US at 16:15 (GMT+3:00).

We also recommend paying attention to the speech of the ECB President Mario Draghi.

by JMarkets, 2018.05.16

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.