Global bond rout and G7 debt pressures; de-dollarization trend; gold rally on weak NFP
Key Questions
What are current levels for key Treasury yields?
The 2-year yield stands at 4.19% while the 30-year yield has moved above 5.2%. The yield curve is flattening as markets price in potential hikes.
How did Warsh's Sintra comments affect bond yields?
His remarks contributed to higher Treasury yields by reinforcing a data-dependent stance without signaling near-term easing.
What happened to the dollar and yen ahead of the June jobs report?
The dollar gained strength while the yen weakened as investors positioned for the employment data release.
Why have gold and silver prices risen recently?
Both metals advanced as Fed rate hike odds declined after the soft jobs report, with gold moving above $4,100 and silver above $62.
What mortgage rate change occurred alongside the bond market moves?
Mortgage rates eased to 6.43% supported by weaker jobs data and developments around Iran peace talks.
Treasury yields high: 2y at 4.19%, 30y above 5.2%. Yield curve flattening as market prices hikes. Warsh's Sintra comments pushed yields higher. Dollar gained ahead of June jobs report; yen weakened. Term premium rising due to reduced forward guidance. Gold bounces above $4,100, silver above $62 (jumped 3% on rate hike fears easing after NFP miss). Gold rallied further, climbing over 1% on weak NFP, with central bank buying adding structural tailwind; technical levels around $4,200 in focus. Asymmetric Research sees $4,000 floor. Pre-NFP article noted inflation breakevens at 1.43% and liquidity paradox (M2 at ATH but risk asset liquidity collapsing). Mortgage rates dipped to 6.43% on Iran peace and weak jobs data.