- US indices pulled back sharply late in the day after weak demand from US bond auctions raised concerns about investor confidence in the world’s key economy.
- The sale of 20-year US government bonds indicated weak demand and will push Treasury prices to new lows this year.
- At the same time, the yield on the 10-year Treasury note rose 10 basis points to 4.582%, while the yield on the 30-year note rose 10.5 basis points to 5.073%.
- The Nasdaq is currently down 0.94%, while the S&P 500 is down 1.1% and the Russell 2000 is down 2.2%.
- The US dollar, represented by USDIDX, is down 0.5% today. Again, sentiment is being weighed on by the health of the US government finances. A rising budget deficit and a recent credit rating downgrade are undermining confidence in the dollar as a global reserve currency.
- The rise in uncertainty is good for precious metals, which are once again rising during today's session. Gold prices are up 0.7% today. At the same time, the VIX fear (volatility) index is gaining 5.1%.
- Bitcoin reached an all-time high today, surpassing $109,000 and reaching almost $100,000, driven by a wave of optimism related to the progress of stablecoin legislation in the United States and the change in the approach of the new administration of President Donald Trump to the cryptocurrency market. However, these movements have now been completely erased and the cryptocurrency is back around $106,000.
- German Chancellor Friedrich Merz has called for the elimination of all tariffs between the US and the EU and plans to convince President Trump to strike a deal during his upcoming visit. The EU is preparing a revised trade proposal for the US, which includes gradual tariff reductions on non-sensitive goods and cooperation in areas such as energy, AI and digital connectivity.
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