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US Treasury bond yields ended Friday’s trading in a bearish direction on weaker risk appetite after rising expectations of raising the federal interest rate based upon the latest US inflation readings. US Treasury bond yields for ten years fell to 3.821%, compared to the previous daily close of 3.862%.
Last week’s inflation data in the United States boosted the US dollar’s recovery as US Treasury bond yields aimed higher. The AUD/USD pair is eyeing the busy economic calendar in Australia and the US next week.
Stocks are mixed on the week. The Dow ended down 0.13% for the week, its third negative week in a row; a first since September. The S&P 500 has shed 0.28% for the week, its second negative week in a row. The Nasdaq rose 0.59% on the week.
Key Developments
On Friday, Fed’s Michell Bowman stated that the US central bank has not finished tightening monetary conditions and reiterated that “we haven’t beaten inflation.” Meanwhile, Richmond’s Fed President Thomas Barkin said that getting inflation back to the Fed’s 2% goal “will require more rate increases.”
Next week, investors will continue to watch earnings season for signs of consumer strength or weakness. Home Depot Walmart and Etsy are scheduled to report results next week.
Gold futures rose for the second consecutive trading session, driven by the deterioration of risk appetite in financial markets since the release of US producer price inflation data. Gold futures for April delivery rose to $1,843 an ounce, compared to the previous daily close of $1,836 an ounce. The precious metal fell to its lowest level in Friday’s session at $1818, compared to a high of $1843.
Oil futures fell for the fifth consecutive session on the declining risk appetite in global financial markets since the issuance of US employment data last Thursday. Factors that contributed to the decline in oil include latest US inflation data. The large rise in US oil stocks and the decision of the US Department of Energy to release 26 million barrels of strategic oil reserves in the United States in order to bridge the supply deficit also contributed to retreating oil prices. US oil futures fell to $67 a barrel, compared to the previous daily closing of $78 a barrel.
Economic Data
The US session witnessed no significant releases on Friday.
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