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Jakarta (Benchmark News) – Declining trends of rising United States Government bond yields after a surge over the past week, supporting the strengthening of stock exchanges in Asia and hit rate of the US dollar index.
U.S Government bond yields have been moving positively during the week, after surprisingly Donald Trump has won the U.S. presidential election and became President-elect barack Obama succeeded.
The price of US bonds began to wane for a tenor of 10 years. Yield is depressed to 2.203% at 10.25 pm. Once in the middle of trading yesterday, the yield is still perched at 2,707 percent.
The U.S. dollar index, which measures the greenback’s strength against multiple currencies at 10.25 BST weakened 0.13% to as low as 100.28.
Dollar index has surged since Trump was elected President last week, as investors assess the Outlook for an increase in U.S. interest rates would occur sooner than previously expected. Remember Trump had plans an expansionary fiscal policy would tighten the inflation rate.
“Trump Steps affect fixed income investments. It may not be surprising, if then that the market started to take a breather. Prices in the investment income showed the market has moved enough for the moment, that raises the possibility the dollar entered a period of consolidation, “wrote Sharon Zollner, a Senior ANZ Economist as quoted Reuters, Thursday (17/11/1999)…(Red)
