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US Treasury Yield Surge | Oil Price Dips Further
Published October 4, 2018
Brent crude prices have hit a new four year high of $86.75 as the market focuses on upcoming US sanctions on Iran, shrugging off the year’s largest weekly build in US crude stockpiles and reports of higher Saudi Arabian and Russian production.
US bonds extended a sharp sell off, driving yields to a multiyear high of 3.2320. Fed Chair Jerome Powell said that the US central bank has a long way to go before interest rates hit neutral, suggesting to markets that more hikes could be on the horizon.
Turkish lira weakened to $6.2273 after data showed that annual inflation had hit nearly 25 percent in September, vastly exceeding expectations, and as the dollar held at a six-week high.
The US dollar gained after the release of ADP National Employment Report that showed private employers added 230,000 jobs in September – the most since February – a sign that strong economic growth is spurring companies to add more workers.