While trading in currencies, it pays off to know how the yields are trading across globe. Short term rates, such as 3 month libor, 2 year government etc. are of high importance in currency movement.
UK:
- UK 2 year yield after falling yesterday, jumped back and up 1.4%, trading at 0.58%.
- Similarly 5 year yield is up 0.92%, trading at 1.43%.
- 10 year yield is up +0.75%, trading at 2.52%
Germany -
German bonds are considered as European benchmark.
- German 2 year yield after falling yesterday, continued drop. Down -1.25% and trading at -0.24%.
- Similarly, German 10 year yield is down -0.95%, trading at 0.62%.
US:
- US yields are showing signs of turnaround. US 2 year yield is up 1.81%, trading at 0.68%.
- US 5 year yield is up 1.6%, trading at 1.54%.
- US 10 year yield is up 1.33%, trading at 2.18%.
With shorter end of the curve ahead of key counterparts, Dollar is likely to remain well bid heading into September.
