The USD’s post-election strength has been driven by widening US bond yield differentials against its counterparts because of US inflation worries over Trump’s plans for blanket tariffs, mass deportation of illegal immigrants, and tax cuts, DBS’ Senior FX Strategist Philip Wee notes.
S&P 500 Index retreats for the first time in six sessions
“The US Treasury 10Y yield rose by 12.3 bps to 4.43%, fully retracing its third quarter’s decline despite the two Fed cuts in September and November. The S&P 500 Index retreated for the first time in six sessions from profit-taking.”
“The index fell by 0.3% to 5984 overnight after hitting the psychological 6000 level on Monday, driven by rising US Treasury yields after the bond markets returned from the Veteran’s Day holiday.”
“With the futures market pulling back more than 100 bps of next year’s Fed cuts since mid-September, let’s see if…
