The False News Triggered a Jump in the US Government Bonds Yield

Yesterday, weak reports on import and export of the US were published. On Wednesday, Bloomberg reported that Chinese officials recommended stopping the purchase of the US government bonds. After this statement, the US government bonds yield jumped sharply, and the dollar fell. However, as it became known later, this statement was considered to be false. The US dollar index (#DX) rose by 0.10%.

During yesterday’s trading session, positive data on the volume of production in the UK was published, but the trade balance was below the forecast value. Today, the Bank of Japan kept the volume of government bonds buying up at the same level. As a result, futures for 10year government bonds of Japan increased by 0.1%, recouping part of the losses.

Yesterday it became known about the further reduction of the oil inventories in the US, as a result the “black gold” prices increased. Today, during the Asian trading session, the oil quotes have begun to fall. Investors are waiting for Donald Trump`s decision to extend the easing of economic sanctions against Iran, which should be taken tomorrow. At the moment, futures for the WTI crude oil are testing $63.45 per barrel.

Market Indicators

Yesterday, the major US stock indices closed in the negative zone: #SPY (0.15%), #DIA (0.08%), #QQQ (0.23%).

The 10year US government bonds yield jumped. At the moment, the indicator is at the level of 2.54%.

The volume of industrial production in the Eurozone at 12:00 (GMT+2:00);Publication of the ECB Monetary Policy Report at 14:30 (GMT+2:00);Producer price index in the US at 15:30 (GMT+2:00);The number of initial jobless claims in the US at 15:30 (GMT+2:00);New housing price index in Canada at 15:30 (GMT+2:00);Report on the US federal budget balance21:00 (GMT+2:00).

by JustMarkets, 2018.01.11