Treasury bonds and the dollar
US Treasuries posted a modest increase at the front of the yield curve, with the monetary-policy-sensitive two-year yield falling by 3 basis points.
Falling bond yields indicate that traders are betting that pressure to raise interest rates will ease.
The dollar traded near its lowest level since April and the euro fell. The Japanese yen rose ahead of the Bank of Japan’s monetary policy decision.
Economic data on Tuesday revealed that industrial production in New York State deteriorated in January to the lowest level since the first months of the Corona pandemic, with a collapse in new orders and sales.
The figures revealed contraction in five of the last six months, confirming the depth of the crisis in the industrial sector as the Federal Reserve raised interest rates.
A survey report from the Federal Reserve Bank of New York revealed that spending growth may be slowing due to higher interest rates, but it is still high.
On the other hand, oil futures recorded an increase in their prices as dealers looked forward to a recovery in Chinese demand this year, after the data revealed that the economy’s performance improved better than expected in the last quarter.
