US 10-year rally on the agenda in global markets

Discourse of the restrictions in the pandemic and the increase in the number of incidents also negatively affect the risk appetite in the markets.

As Asia Pacific shares declined, the upward streak in the US S&P 500 ended on Tuesday. In the first trading day of the new trading day, S&P 500 futures remained flat.

The Bloomberg Dollar Index, which closed Tuesday with 0.4 percent gain, is flat. Emerging market currencies are mixed against the dollar today.

An ounce of gold is pushing over $1,800.

rally in the US 10-years

After the economic recovery in the USA, the Fed’s withdrawal of fundamentals and the ISM Services Index, which is one of the information monitored during the process, was announced at the lowest level in four months, yields in US bonds fell sharply.

The face of the declines was increased by the squeeze as the opposite traders closed their short positions.

The yield on the US 10-year benchmark Treasury bond fell close to eight basis points on Tuesday to 1.35 percent, its lowest level since February 24.

The 30-year U.S. bond yield fell below the psychic threshold of 2 percent and tested its 200-day moving average at 1.971 percent.

While TD Securities strategists retracted their short-term recommendation against the 10-year bond, they say that the “summer’s low volumes and the rush to close short positions” triggered a rally in the bond.

After the ISM Services Index peaked at a record 64 in May, 60.1 in June exceeded the expectations of 63.5.

under triggered the bond movement.

According to BMO Capital Markets strategists Ian Lyngen and Benjamin Jeffery, this information is a valuable sign that the current US recovery is “temporary.”

Investors will see the Fed’s intention regarding the state of the recovery in the minutes of the Fed meeting, which will be announced at 9:00 p.m. tonight.

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