The Prime Minister of the United Kingdom Boris Johnson experienced a vote of no confidence in Conservative MPs on Monday, but gold and treasury bills suffered losses due to sales, which began when talks on his replacement intensified London and New York.
Yields on 10-year Treasury bonds rose 9.9 basis points (basis points) overnight, reaching 3.0580% at the start of the Asian session. The move lifted the dollar and poured cold water on China’s initial optimism about COVID’s quarantine. [US/]
The dollar rose another 0.6 percent against the yen on Tuesday, reaching 132.75, the highest level since 2002 as the Bank of Japan hides as the rest of the world tries to hit inflation hard with rising interest rates. [FRX/]
Ten-year gold yields rose 10.2 basis points to a seven-year high of 2.256% on Monday. [GBP/]
“It seems that … any path to early elections in the UK could lead to additional fiscal measures by the UK,” said John Briggs, strategist at NatWest Markets.
“This, in turn, carries with it greater risks of inflation,” he added, while in the Atlantic, “the market is wondering where it will stop,” the 10-year treasury’s profitability has exceeded 3%.
The broadest MSCI stock index in the Asia-Pacific region outside of Japan fell 0.8% as the Hong Kong market recovered some of its gains on Monday. Japan’s Nikkei rose 0.3%. [.T]
Beijing is easing COVID restrictions, and the Wall Bourse Journal reported on Monday that a cybersecurity investigation into the transport giant Didi, which will cause a flurry of open lighting in the Internet sector, will be completed soon.
“Even what should have been a significant relief for China under the mitigation of regulatory risks and COVID constraints is likely to be damaged by liquidity-absorbing risks and price shocks,” he said. Said Vishnu Varatan, an economist at Mizuho.
WAVE OF INCREASE?
The Central Bank of Australia is set to set interest rates later on Tuesday, as traders are confident they will rise by at least 25 basis points.
Markets estimate a 3/4 probability of a 40-point increase, which will reduce the spot rate to 0.75%, and analysts believe that such an increase could raise the Australian dollar.
Analysts believe that the growth of this scale may delay the Australian dollar. “Increasing the consensus by 25 basis points is likely to lead to a slight decline in the Australian dollar,” said Rob Carnell, head of Asian research at ING.
Concerns that high inflation in the United States on Wednesday could lead to a further rise in US Federal Reserve interest rates beyond the 50-point increase expected next week are keeping the US dollar in focus.
The Australian dollar fluctuated 0.4% to $ 0.7169 during the morning trading against.
The euro fell 0.2% and was below its 50-day moving average of $ 1.0677, but held back further nerve-wracking losses due to the possibility of raising the rate or tone of the European Central Bank, which will take place on Thursday.
On Tuesday, Bank of Japan Chairman Haruhiko Kuroda was left without friends, promising economic support and easy monetary policy, even as prices begin to rise.
Crude oil closed, and futures on Brent remained at $ 120 a barrel. [O/R]
Growth in US yields weighed in on gold, which fell slightly to $ 1,839 an ounce. Investors were also nervous about cryptocurrencies, with bitcoin falling about 5 percent to just under $ 30,000.