Commodity News
HeadLine : Yen weakens to 111 per dollar as U.S. Treasury yields soar
Date : Sep 28 2021
The yen traded near an almost three-month low to the dollar and reached a two-week trough versus the euro on Tuesday, as rising bond yields in the U.S. and Europe lured Japanese investors. While benchmark 10-year Japanese government bond yields JP10YTN=JBTC remain pinned near zero by the Bank of Japan's yield curve control policy, equivalent U.S. Treasury yields have soared to a three-month high, touching 1.516% overnight. German 10-year bund yields, while below those on JGBs, have catapulted to the highest since the start of July at minus 0.191% from as low as minus 0.340% just a week ago. U.S. yields have been pulled higher by a hawkish shift at the Federal Reserve, which announced last week it may start tapering stimulus as soon as November and flagged interest rate increases may follow sooner than expected. That was reinforced by hawkish tones from the Bank of England and Norges Bank, which last week became the first developed-nation central bank to raise interest rates, pulling other global bond yields higher. 

Source: Reuters
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