Bond Yields: World Economy and Interest Rates

bond yields: The pound slipped below 1.30, according to The Guardian. World economy at risk of another financial crash, says IMFRead more Rising US bond yields indicate that the Federal Reserve, under its hawkish chairman Jerome Powell, is likely to keep raising interest rates from their current 2.25% well into 2019. With impressive service sector data published on Wednesday and strong jobs figures in the non-farm payrolls expected on Friday, the dollar hit an 11-month high against the yen and drove US treasury yields to their highest since mid-2011. They are also unfavourable for emerging markets as they tend to draw away much-needed foreign funds while pressuring local currencies. The Indian rupee fell to an all-time low against the dollar on Thursday morning of 73.77 while the Indonesian rupiah has plunged to a 20-year low. The Australian dollar, which is seen as a proxy for emerging Asian markets, slipped below US 0.71 and seems set to dip further. (news.financializer.com). As reported in the news.