US Dollar and Treasury Yields Rise Amid Oil Surge and Fed Rate Hike Expectations
2 sources across 2 countries · Indonesia · United Kingdom
Who reported this
- The Jakarta Post
- Reuters
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- Centre-left
- Centre
- Centre-right
- Right
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The US dollar reached near a two week high as surging oil prices lifted Treasury yields and increased expectations for a Federal Reserve interest rate hike. Benchmark 10 year Treasury yields breached the 5 percent level for the first time since October 2023. Oil prices climbed to 107 dollars a barrel, hovering near a four month peak, following Houthi attacks on Saudi Arabia and the postponement of Gulf Iran talks.
Market participants now view a Federal Reserve rate hike on Wednesday as a near certainty. According to the CME FedWatch tool, there is a roughly 93 percent chance of an increase, which would be the first in more than three years. This sentiment follows a stronger than expected jobs report and a pickup in consumer prices for August. Additionally, markets expect the Bank of Japan to raise rates this Friday.
Asian shares wavered amid these developments. Risk appetite weakened as stock markets tumbled, with AI related shares facing pressure after industry leaders called for slower development to contain potential threats to humanity. The dollar index was last recorded at 99.55, while the yen fell roughly 0.2 percent to 154.72.
How each side framed it
- Centre-left
- Detailed the specific geopolitical drivers of oil prices and the influence of AI industry warnings on market risk appetite.
- Centre
- Focused on the technical movements of shares, yields, and the dollar in anticipation of central bank meetings.
Sources
- Centre Reuters: US 10-year yields reach 5%, highest since 2023 - reuters.com
- Centre Reuters: Dollar near two-week high as oil surge lifts yields, Fed hike bets - reuters.com
- Centre Reuters: Asian shares waver as oil and yields rise ahead of Fed, BOJ meetings - reuters.com
- Centre-left The Jakarta Post: Dollar near two-week high as oil surge lifts yields, Fed hike bets
100% of the statements in this article were traced back to the source articles listed above.