Bonds Fall After Trump-Powell Scandal, Dollar Rises – Asia Market Wrap
The Dollar recovered some of its losses from Wednesday, as Treasuries fell after a tumultuous session fuelled by speculation about Chair Powell’s future.
The Dollar rose against all of its Group-of-10 peers, extending this month’s rally. The Yen fell to 148.51 per Dollar, with some currency strategists predicting a drop past 150. Equity-index futures for the S&P 500 declined 0.2%, following a rally in US stocks after Trump talked down the possibility of firing Powell. Treasuries fell, with 10-year rates climbing two basis points to 4.47%. Asian stocks moved in a narrow range.
The Australian Dollar sank, and government bonds plummeted, as expectations that the central bank would slash interest rates in August increased.
In tariff news, Trump toned down his combative tone with China in an attempt to negotiate a summit with counterpart Xi Jinping and a trade agreement. Trump also stated that he would write letters to more than 150 countries informing them of tariff rates, which may range from 10% to 15%.
