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Markets have repriced US interest rate expectations sharply higher in the first quarter of 2021, with rates now seen above 2% by 2025. US 10-year Treasury yields rose from about 0.9% to as high as 1.7%.
The move is attributed to upgraded US growth prospects from the Biden fiscal package and rapid vaccine rollout.
Wider US rate differentials pull capital toward dollar assets and weigh on the euro, sterling and other currencies. A firmer dollar can make US commodity exports less competitive abroad.
irishexaminer.comOliver ManganMar 29, 2021After 533 past bearish macro events, Euro (USD per EUR) moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
