Interest is falling in the Eurozone and the United States
Interest rates are following the direction of the beginning of the session and are falling significantly in the eurozone and the United States, at a time when macroeconomic data indicates that the Federal Reserve is not restricting monetary policy any further.
The German 10-year bond yield – the “benchmark” for the European market – fell 4.9 basis points to 0.944%, thus remaining below the 1% psychological line it reached on May 5th.
In contrast, the yield on Italian ten-year bonds fell 2.6 basis points to 2.862%, while the yield on French bonds with a maturity fell 5.2 basis points to 1.458%.
In the Iberian Peninsula, interest on Portuguese ten-year debt fell by 5.3 basis points, however, it remained above the 2% line it reached on April 29, more specifically at 2.040%. The yield on Spanish bonds with the same maturity fell 3.8 basis points to 2.010%.
On the other side of the Atlantic, interest on US 10-year debt fell 3.1 basis points to 2.716%, after the release of the private consumer spending index.
The Federal Reserve’s preferred index (Fed), as it is known in the United States, rose 6.3% on an annual basis in April, a slowdown from 6.6% recorded in March, according to data released Friday. Trading.
Also this month, consumption rose 0.9% while the savings rate fell to 4.4%, the lowest level in 14 years, indicating that many Americans are using savings to mitigate rising costs.
Thus, this data gives a signal to the market that the Federal Reserve may not need to tighten its restrictive monetary policy further and that the economy is resilient, given the fear of a possible recession.
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