US Treasury Yields Hit Multi-Year Highs as Markets Await US Employment Report
Global forex markets show moderate movements as investors await US jobs data. US Treasury yields hit multi-year highs while Fed's Neel Kashkari warns inflation remains too high.
Moderate movements characterized global foreign exchange markets, with the Japanese yen registering a notable decline, as investors awaited the crucial US monthly employment report due tomorrow. In the local market, the US dollar remained virtually unchanged, trading around 3.07 NIS.
Global Markets and Bond Yields
Globally, the US dollar index edged up by 0.1% to 101.6 points. The euro held steady, trading above $1.13, while the British pound dipped 0.1% to trade above $1.32. Meanwhile, the dollar climbed 0.5% against the Japanese yen, reaching 158.1 yen.
Driving market sentiment is the continued surge in US Treasury yields. The yield on the 10-year US Treasury note rose by 5 basis points yesterday, approaching 5.30%—its highest level since 2007. Additionally, the 30-year bond yield advanced by 4 basis points to 5.63%, marking a peak not seen since 2002.
Federal Reserve Stance on Inflation
Minneapolis Federal Reserve President Neel Kashkari stated yesterday that inflation remains a pressing concern, despite recent economic data coming in below analyst forecasts.
"Inflation is still too high," Kashkari said in an exclusive interview with Steve Liesman of CNBC during a Council on Foreign Relations event in New York.
His remarks followed the release of the Personal Consumption Expenditures (PCE) price index for August, which serves as the Fed's preferred inflation gauge. The core PCE index, excluding volatile food and energy prices, rose at an annual rate of 3%, falling short of economist expectations. Kashkari noted that while various metrics exist, inflation hovers persistently around the 3% threshold, remaining elevated for over five years.
