Source: Market Watch
Ten-year US Treasury yields hit 2.873 per cent this morning - the highest point since July 2011. This comes as investors express concern about the potential tapering off of bond buying by the US Federal Reserve as early as September.
Although higher US yields typically give a boost to the dollar (by increasing the attractiveness of dollar-denominated assets), gains have been tempered by improvements in economic indicators in the UK and Eurozone, boosting their respective currencies.
Imagine if this pop in UST yields gets out of control. The contagion, to huge EM economies, would make EZ problems look small.— financial acrobat (@finansakrobat) August 19, 2013