- European session review: USD weakens slightly as U.S. Treasury bond yields eased
Market news
European session review: USD weakens slightly as U.S. Treasury bond yields eased
| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|---|---|---|---|---|---|
| 08:00 | France | IEA Oil Market Report | ||||
| 09:00 | Eurozone | Industrial production, (MoM) | February | 0.8% | -1.1% | -1% |
| 09:00 | Eurozone | Industrial Production (YoY) | February | 0.1% | -0.9% | -1.6% |
USD fell slightly against most of its major counterparts in the European session on Wednesday as strong demand at the latest U.S. bond auction caused a decline in the U.S. bond yields.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.1% to 91.79.
The U.S. Treasury yields showed a widespread drop as the auction of 30-year bonds Tuesday afternoon saw strong demand. Investors bid for nearly two-and-a-half times more than the $24 billion on offer. This suggested that market participants were not worried about slightly higher than expected U.S. CPI figures for March and stay comfortable with the Fed's pledge to keep its interest rates at their current ultra-low levels for at least another two years.
Benchmark 10-year Treasury bond yields decreased five basis points to 1.62% at yesterday’s close and fell further to a three-week low of 1.61% overnight. At the moment, 10-year note yields are trading at 1.63%.
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