The US economy has shown positive signs in today’s round of economic data, with JPMorgan chief Jamie Dimon expressing optimism about the consumer and credit. However, this has further fueled the ongoing bond market turmoil as October begins. Despite hopes that the bond market’s downward trend last week was due to quarter-end adjustments, buyers have not returned. As a result, 10-year yields have increased by 10 basis points to reach 4.67%, coming close to reaching last week’s high.
The increase in yields has also affected the value of the dollar, which is rising alongside them. Many have predicted that the US dollar has reached its peak, but significant shifts like the one we are currently witnessing do not typically end quietly. Instead, they tend to end with a dramatic climax, and it seems increasingly possible that we may be heading towards that point. The EUR/USD exchange rate has just broken through the 1.05 level, indicating a weakening of the dollar against the euro.
