US bond standoff raised concerns

29 Sep, 2021

The US dollar soared and gold fell below the threshold

Powell: the United States still has a long way to go in achieving full employment. The Fed has almost met the conditions for starting taper (minus QE). In contrast, the requirements for raising interest rates are obviously higher. Inflationary pressures indicate a mismatch between supply and demand. Inflation pressure is still expected to fall.
Selling has swept through US Treasury bonds, and treasury bonds maturing in the middle of next month face the risk of deferred payment.
The dollar index hit its highest level since the beginning of November last year, rising 0.33% to close at 93.72; The yield of us 10-year Treasury bond once hit 1.57%, the highest since mid-June.
Spot gold once fell more than 1%, breaking its low since August 11 to $1728.19/ounce, as the market expected the fed to raise interest rates earlier than expected, the dollar strengthened and US bond yields soared. COMEX December gold futures closed 0.8% lower at $1737.5 an ounce.

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