Lates News

President Trump's remarks that the war with Iran could end in two to three weeks boosted US bond prices on Wednesday, causing yields to fall. The market speculates that the rapid cooling of tensions could clear the way for the Federal Reserve to resume cutting interest rates. The yields on 2-year and 10-year US bonds fell by about 6 basis points to 3.73% and 4.26%, respectively. Analysts point out that due to pressure from declining approval ratings, Trump may find it difficult to bear the economic risks of a prolonged conflict. Kenta Inoue, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities, said that with concerns about the energy crisis easing, the yield curve at the short end is expected to start digesting rate cut expectations. Valentin Marinov, G-10 foreign exchange research director at Nomura Securities, pointed out that the US dollar, as the biggest beneficiary of the war, attracted a large number of long positions. The market is currently witnessing the unwinding of these positions.