Economic Data Supported the US Dollar and Treasury Yields
The US dollar pulled back in the early hours of December 1. OPEC’s agreement to curb the oil output caused the dollar to rise on November 30.
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The US dollar is stable in the early hours on November 30. The PowerShares DB US Dollar Bullish (UUP) fell 0.25% to 26.11 on November 29.
After pulling back on November 28, the US dollar recovered in the early hours on November 29. UUP fell 0.23% to 26.18 on November 28.
In North America, US stocks closed lower on November 28 amid the pull back. The utilities and telecom sectors were the biggest outperformers.
The US Dollar Index fell in the early hours on November 28. The stronger economic data improved the chances of an interest rate hike in December.
Treasury yields witnessed a secular rise in October. Except for yield on the one-month Treasury bill, which remained flat month-over-month, all other tenors saw a visible rise in yields.
The energy sector affects jobs, the economy, and the environment. Both Hillary Clinton and Donald Trump support the use of natural gas, a cleaner alternative to coal.
Western trading partners have abundant evidence for criticizing China about its leaving steel on the global market, its glacial financial-market reforms, and its corporate debt binge.
Both Donald Trump and Hillary Clinton have expressed a desire to reshape the tax code to make substantive changes in fiscal policy.
A poll conducted in late August 2016 found that 44% of Americans supported Obamacare and 51% disapproved of it.
While Donald Trump wants to get rid of the Dodd–Frank Act, especially the Consumer Financial Protection Bureau, Hillary Clinton wants to retain it.
The 2016 US presidential election is scheduled for November 8, 2016. This election will mark the 58th quadrennial US presidential election.
US equity markets were marginally higher on October 12, the day of the release of the minutes for the September monetary policy meeting.
In the current market environment, duration risk has risen across bond markets (BND) (LQD). When interest rates rise, bonds with a higher duration will likely be affected more.
All countries have suffered from yield increases, and monetary policy is turning less accommodative, even in Japan and the European Union.
The ten-year Treasury note, which rose in price in the first half of 2016 and pushed the yield down to 1.4%, has started selling off in the second half of the year.
Investors have once again flocked to bonds, the Japanese yen, and gold due to the 10.0% fall in China’s exports and concerns over a major rejig by the central banks.
The colossal central bank stimulus at below-zero rates and quantitative easing have wreaked havoc on the correlation dynamics between stock and bond prices.