US Treasury Sec. Yellen extends government default deadline to Dec 15, yields rejoice

Dhwani Mehta FXStreet

US Treasury Secretary Janet Yellen offered some consolation to the market late Tuesday after she announced an extension to a deadline for a potential US government default to December 15 from December 3.

The extended deadline would give Congress more time to raise the federal debt ceiling.

Yellen told lawmakers that she now estimates that the US to reach its debt limit on December 15, almost two weeks later than her initial forecast of December 3.

In reaction to Yellen’s statement, the yields on the US 10-year Treasury bills extended its post-Retail Sales gains and reached the highest levels in three weeks at 1.644%.

Amidst rising inflationary pressures and Fed’s rate hike expectations, the returns on the US debt are once again looking attractive while the US dollar holds near 16-month peak against its main competitors.

Read: US 10-year Treasury yields wobble at three-week top on mixed clues

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD slumps below 1.1800 on hawkish Fed Minutes, eyes on ECB succession

The EUR/USD pair tumbles to a near two-week low around 1.1785 during the early Asian session on Thursday. The US Dollar strengthens against the Euro on hawkish FOMC minutes that revived speculation about potential interest rate hikes if inflation remains elevated.

GBP/USD extends decline as weak jobs data bolsters BoE rate cut bets

The Pound Sterling continued to backslide under sustained pressure on Wednesday, following through after the UK employment report on Tuesday showed a labour market deteriorating faster than expected.

Gold consolidates the rebound below $5,000, US data eyed

Gold price consolidates the previous rebound below $5,000 in the Asian session on Thursday. The precious metal recovered on Wednesday amid shifts in geopolitical sentiment, boosting safe-haven demand. Traders will keep an eye on the release of US Initial Jobless Claims, Pending Home Sales data, and the Fedspeak later on Thursday.

Zora launches attention markets on Solana network

Zora has launched a new attention markets feature on the Solana network, allowing users to trade and speculate on emerging online cultural trends.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.