The dollar index fell to its lowest since early January on Thursday and dropped to three-year lows against the Australian and Canadian dollars, after dovish signals from the U.S. Federal Reserve boosted the reflation trade in currency markets. Easy financial conditions, the promise of fiscal stimulus and accelerating COVID-19 vaccine rollouts have driven money into what's known as the reflation trade, referring to bets on an upswing in economic activity and prices.
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The recent rise in U.S. Treasury bond yields is a proper market response to the country’s expected rapid growth and expectations for stronger inflation, St. Louis Federal Reserve president James Bullard said on Thursday.
“With growth prospects improving and inflation expectations rising, the concordant rise in the 10-year Treasury yield is appropriate,” Bullard said in remarks prepared for delivery to an economic forecasting seminar organized by Georgia State University.
NEW YORK, Feb 24 ― A gauge of global equity markets rebounded in a late-session rally yesterday after US Federal Reserve Chair Jerome Powell calmed fears of rising interest rates that have roiled bonds and helped spur assets linked to expectations of a strong recovery. Copper, a leading indicator.
Global securities settlement house DTCC proposed on Wednesday a two-year timetable for introducing one-day settlement to cut risk in securities transactions in the United States.
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FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie
(Reuters) - The Federal Reserve says its Fedwire Funds, Fedcash and some check clearing services have resumed normal operations after a more than three-hour disruption to more than a dozen critical central bank payment services forming the backbone of the U.S. banking system.
The National Settlement Service and the Fedwire Securities Service, which provides issuance, settlement and transfer services for Treasuries and other government securities, have also been restored, the Fed said.
“Our technical teams have determined that the cause is a Federal Reserve operational error,” the Fed said on Wednesday on its website. “The Federal Reserve Banks have taken steps to help ensure the resilience of the Fedwire and NSS applications, including recovery to the point of failure.”