16 August 2001, 12:20  It was a chaotic day in the credit markets

as players' attention was drawn to the weaker dollar and its impact on the global economy. U.S. July business inventories gave Wall Street an early set of data on which to trade, coming in weak but better than players had hoped for at down 0.4%. As a result, the front of the curve inched lower. Meanwhile, the Treasury announced a $1.75 billion buyback in maturity ranges of 2015 to 2019, which helped the back end garner support. However, because a weak dollar can herald higher inflation, the long end of the Treasury market began to feel pressure. It did not take long before the general malaise overtook the entire curve. The 2-year yield was higher by 6.2 basis points to end at 3.782%. The 5-year yield rose 4.6 basis points to end at 4.562%. The 10-year yield gained 2 basis points to end at 4.992%. The 30-year yield was just marginally higher, rising 0.3 basis points to end at 5.516%.

© 1999-2024 Forex EuroClub
All rights reserved