INTEREST RATES AND CURRENCIES: The price of aluminum crossed a major barrier for the first time in years

Interest rates on US government bonds remained almost unchanged on Friday as investors assessed the economic outlook and opportunities for further interest rate cuts.

The interest rate on the ten-year government bond was about one percentage point lower at 4.159 percent. Friday was the first trading day of the year in the bond market.

The minutes of the US central bank Fed’s December interest rate meeting published on Tuesday gave a divided picture of the central bank’s line. The Fed lowered the key interest rate by 25 basis points to a range of 3.5-3.75 percent. The decision was approved by a vote of 9-3, and there were more than once different opinions since 2019.

The next interest rate decision will be made on January 28.

In Europe, interest rates on government bonds were mainly rising. In Germany, France and Great Britain, the interest rate on the ten-year government bond was about 2–3 percentage points higher.

A new record for aluminum

In the precious metals market, the price of silver was up by about three percent at $74 per ounce. The price of gold was also up by one percent at just under $4,400 per ounce.

The price of aluminum rose for the first time since 2022 to more than $3,000 per ton. The price is especially driven up by supply challenges, when the world has had less aluminum in stock than usual as a result of China’s production restrictions and the slowdown in European aluminum production.

At the same time, demand for aluminum in the construction and renewable energy sectors continues to be strong.

In the foreign exchange market, the US dollar strengthened slightly in the quiet holiday trade at the beginning of the year. Correspondingly, the exchange rate of the euro weakened slightly against the most significant currencies.

At 3:40 p.m., one euro was worth 1.1722 dollars, 183.89 yen, 0.8715 pounds and 10.810 Swedish kronor at the time of review. One dollar equaled 156.89 yen and 0.7436 pounds.