Does it smell like Liz? [Video]
![Does it smell like Liz? [Video]](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/new-twenty-pound-notes-3079030_XtraLarge.jpg)
The selloff in US treasuries continued yesterday over concerns that Donald Trump’s presidency would boost spending and inflation in the US, and make the Federal Reserve’s (Fed) job of bringing inflation back to the 2% target more difficult. The selloff slowed after weaker-than-expected ADP report.
Across the Atlantic, The 10-year gilt yield advanced to the highest level since 2008 yesterday and broke above the peak levels that were reached during Liz Truss’ historic mini budget crisis. Sterling fell against a broadly bought US dollar, but also against the weakening euro.
The barrel of US crude remembered what it was like to sit above the $75pb level for a while, before returning to the $73-ish levels. And finally, trade tensions get tenser between the US and the latter. Biden announced additional restrictions on AI chip exports – after blacklisting Tencent and CATL, one of Tesla’s key battery suppliers. Nvidia dipped below $140 share after the bell, while quantum stocks tanked after Jensen Huang said that he doesn’t see quantum computers’ usefulness before 15 – or even 20 years.
Note that the US stock markets will be closed today as day of mourning for Jimmy Carter, while the bond market will close at 2pm New York time.
Author
Ipek Ozkardeskaya
Swissquote Bank Ltd
Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.
