Forex Today: Turmoil in bond markets
|What you need to know on Friday, February 26:
The greenback was under pressure throughout the first half of the day, but got a boost mid-US afternoon from a Treasury auction, turning higher against most of its major rivals.
The 7-year bond was auctioned at 1.19% vs 1.14% ahead of the event, pushing the yield on the benchmark 10-year US Treasury to 1.614%, a level last seen before the pandemic hit the US. By the end of the day, it stood at 1.49%.
US indexes plummeted post-bond-auction, with the Nasdaq trading over 3% lower at some point. Indices bounced just modestly ahead of the close but closed in the red.
The EUR/USD pair hit 1.2242 but settled around 1.2180. GBP/USD settled near a daily low of 1.3999. Commodity-linked currencies retreated from fresh multi-year highs, with AUD/USD touching 0.8006 and USDCAD 1.2467.
UK´s chief medical officials recommended downgrading the coronavirus alert level as pressure on the health system recedes.
Gold fell to a fresh 2021 low of $ 1,760.55 a troy ounce amid yields’ madness. Crude oil prices were immune to market’s turmoil, with WTI ending the day little changed at around $ 63.40 a barrel.
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