The trade war caused a drastic sales wave in US shares, dollar and longer state loans, when investors’ confidence in the United States took a hit.
On Tuesday, the market interest rates and prices of US government loans were relatively small. The market interest rate on a ten -year state loan was 3.3 with a bill of 4.341 % and a two -year 2.7 interest rate decline at 3.818 %.
The interest rate point is one hundredth of a percentage point. The market interest rate describes the return on the investor if the loan is held until the due date.
States are borrowing by calculating the bonds paying annual interest. These are traded in the aftermarket where the market interest rate varies: if prices fall, the market interest rate will increase, as annual interest rates are cheaper.
US Central Bank Fed CEO Jerome Powell It is intended to comment on the economic outlook tomorrow. The market has been discussed whether the Fed could start buying US loans when needed.
In the interest rate market
Last week, the market interest rate on the US 10 -year government loan increased by more than 50 interest points, which is an exceptionally large business during the week. This arose a speculation who is selling loans. Sellers are speculated to be China and Japan.
Financial Media CNBC by China is the second largest lender in the United States with a $ 760 billion loan. The largest lender is Japan.
“I think China is already making weapons on its loans,” the research company Alpine Macron swallow Chen Zhao thought CNBC: lle. On the other hand, not everyone believes in this theory.
Market moods are slightly calmed down by the US President Donald Trump with comments. For example, yesterday he announced that he was considering relief for those who have car and car parts.
On the other hand From Boeing.
In Europe, market interest rates for longer and shorter loans were mainly rising. For example, Germany’s ten -year rising by 2.5 interest points at 2.532 % and a two -year 0.6 interest rate increase by 1.757 %.
In the currency market in the dollar, movements were small. The index proportionate to several currency in Bloomberg’s dollar was near yesterday’s final reading.
The euro weakened slightly against the dollar. The euro received $ 1.1309, $ 161.62 in Japan, 0.85509 British pounds and € 11.104 Swedish.