February 4, 2023

US Treasury yields rise, oil prices fall on Ukraine's peace hopes

US Treasury yields rise, oil prices fall on Ukraine’s peace hopes

  • Ukraine and Russia report rare progress in peace talks
  • Standard 10-year yields reach two-and-a-half year high
  • Oil prices fall 8%
  • The US dollar index fell

NEW YORK (Reuters) – U.S. Treasury yields hit a 2-1/2-year high on Monday, while oil prices fell as investors weighed positive comments from ceasefire talks between Russia and Ukraine along with expectations of a first rate hike. by the US Federal Reserve.

Russian and Ukrainian officials gave their most optimistic assessments on Sunday of progress in their talks to end the conflict, and some delegates said draft agreements could be reached within days. Read more

European shares closed higher on Monday on initial hopes for progress in peace talks while oil prices fell to their lowest level in two weeks on the back of prospects for increased global supplies.

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said Thomas Hayes, CEO of Great Hill Capital in New York.

Investors expect the US central bank to raise interest rates more aggressively this year, after data on Thursday showed annual inflation in February rose at the fastest pace in 40 years, forcing Americans to dig deeper to pay rents, food and gasoline. Read more

US 10-year yields rose to 2.1099%, the highest level since July 2019.

“The Fed is expected to raise rates by 25 basis points (this week) and you see a 10 rise in yields, which is positive from a yield curve perspective and means that the settlement may be nearing its end. A reversal and stagnation in the near term,” Hayes said.

Pan-European STOXX 600 Index (.stoxx) It rose 1.24% while the MSCI Worldwide Stock Index rose (.MIWD00000PUS) fall 0.24%. Overnight in Asia, Nikkei 225 (.N225) It closed up 0.58%.

On Wall Street, the Dow Jones Industrial Average (.DJI) The S&P 500 rose 0.66% to 33,161.13 (.SPX) It lost 0.06% to 4201.92 and the Nasdaq Composite Index (nineteenth) It fell 1.18% to 12692.11.

In early afternoon trading, Brent crude futures were down 6.57% to $105.27, and US West Texas Intermediate crude contracts were down 6.4% at $102.34 a barrel.

The US dollar fell against a basket of currencies on Monday, but settled near a 21-month high last week, buoyed by hopes for peace between Russia and Ukraine. Read more

The dollar index fell 0.21 percent, with the euro rising 0.59 percent to $1.0973.

Gold prices fell as US Treasury yields rose. L3N2VH0NN

Spot gold was down 1.3% at $1,959.62 an ounce, while US gold futures fell 0.9% to $1,94.70 an ounce.

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(Shibuike Ujh Report) From New York. Editing by Emilia Sithole Mataris

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