Tuesday, November 15, 2016

The concern for Trump unleashes bond sales and progress of the dollar index – Expansion MX

NEW YORK (Reuters) –

the wave of The market Treasury bonds of the united States was resumed this Monday, following the worst week for the debt of the country in more than seven years, due to growing concerns of an acceleration of inflation under the policies of the president-elect Donald Trump.

returns the debt to 30 years, the most sensitive to inflation expectations, have exceeded the 3% for the first time since January. The gap between the yields of the notes to 10 years and two years went up from 1.21% at the end of last week, to a 1.26 percent, its highest level since December, reported Reuters.

The movements occurring after the huge wave of selling last week, arose in the wake of the surprise victory of a republican in the presidential election.

The prices of Treasury bonds suffered a loss weekly of 1.9%, its biggest drop since June 2009, according to the data of the performance index of fixed income assets of Bank of America/Merrill Lynch.

The differential in yields between the debt to 10 years, protected for inflation, and the regular bonuses of the same maturity reached 1.99%, its highest level since September of 2014, showed data from Reuters.

The higher expectations of an acceleration of inflation in the united States impact on bonds because they reduce the value of its future interest payments.

yields on u.s. debt to 30 years up to a maximum of 3.06%, a level not seen since last December. The returns on the paper of reference 10-year moved up to 2.30%, its highest highest since December.

although the wave of selling hit mostly to the bonds for 10 and 30 years, the rendimients of the notes, to two and three years climbed to their highest levels since January, as investors expect most of the Federal Reserve to raise its key interest rate at its meeting on 13 and 14 December this year.

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triumph of Trump sticks to predictions macro to Mexico

on the other hand, the dollar index touched this Monday to a maximum of 11 months, on a path upward led by the returns of the debt of the united States to the expectations of an inflation rate higher in that country following the election victory of Donald Trump.

The yuan fell to a level weaker against the dollar since 2010, the year in which we introduced the operations offshore of the chinese currency.

“Much of the movement of the dollar has to do with higher yields of treasuries,” said Christopher Vecchio, analyst at currencies of FXCM in New York.

in Addition, the dollar index rose 1.1% to 100.10 to 100.22 earlier this Monday, its highest level since 3 December last year.

The return of the debt of the reference to 10 years in the united States rose to a 2.30%, its highest since early January, while a measure in the bond market inflation expectations of investors in the 10-year touched its highest level in more than two years.

The euro lost 1.1 percent to 1.073 dollars, after touching its floor against the u.s. currency since December 3, 2015, while the dollar inched up 1.8 percent to 108,43 yen after reaching its strongest level since June 23.

The surprise victory of Trump also led to expectations of triumphs similar in Europe in the coming months. Fears over a rise in nationalist sentiment and trade restrictions in Europe pressured the euro, analysts said.

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