US trade deficit is narrower than expected – interest rates on government bonds are rising

The unemployment rate in the euro area was 6.4 percent in November. Bloomberg Analysts' consensus forecast expected the unemployment rate to be 6.5 percent. In September, the unemployment rate was 6.5 percent.

In Germany, industrial production contracted -0.7 percent in November and was below the consensus forecast of economists, which expected industrial production to grow 0.3 percent. In October, production fell 0.4 percent.

Germany's ten-year bond yield rose 5.7 percent to 2.190 percent. The interest rate on the two-year loan rose 4.2 percent to 2.581 percent.

The interest rate on Italy's 10-year debt rose 4.1 percent to 3.853 percent. The two-year equivalent rose 4.5 percentage points to 3.165 percent.

Other well-known European long-term government bond interest rates also rose on Tuesday.

In the US, the trade balance deficit is narrower than expected

In the United States, the trade balance had a deficit of $63.2 billion in November, while analysts' consensus forecast was for a deficit of $64.9 billion. The October figure was revised to $64.5 billion.

Investors are weighing future moves by the central bank, the Fed, to cut key interest rates. At the moment, the market is giving an interest rate cut probability of 58 percent in relation to the March interest rate decision.

The yield on the 10-year U.S. Treasury note rose 1.1 percent to 4.042 percent. The interest rate on the two-year loan stood at 4.387 percent, up 1.5 percentage points.

In the foreign exchange market, the dollar strengthened against the euro.

At 15:35, the euro gained 1.0937 dollars, 157.63 yen, 0.85993 pounds or 11.219 Swedish kroner. The dollar is 144.06 yen and the pound is 1.2721 dollars.

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