The US dollar has toppled down and US Treasury yields picked up multi-week lows yesterday. It has weakened the prospects for higher interest rates in the US.
The stock prices of The Wall Street also rose and the Employment Cost Index data showed a minor quarterly rise in 33 years. The oil prices have also gone down on second consecutive day, which has given air to worries about worldwide oversupply.
The dollar index dipped down 0.7 percent and the other major currencies have also weighed down because of a 1 percent jump in the Euro to $1.1036. The index has been growing consistently and it touched a one week high earlier.
The prices of Treasuries also fell to a three week low of 2.2550 percent with the price picking up by 1732 of a point. The Treasury bond yield of 30 years has also fallen to a current two month low of 2.9040 percent compared to a yield of 2.9390 percent before the data arrived. It was up 2932 of a point.
The Employment Cost Index that is actually the biggest measure of labor costs picked up by 0.2 percent in the last quarter, according to the US Labor Department. There was a forecast of 0.6 percent rise in the report, according to the Economists. This would allow the Federal Reserve to increase rates beginning from as early as September.
The shares of European market dipped down a little but it remained in check for a 4 percent rise on a monthly basis. The worries about Greece’s membership of the Euro area have also weakened by a great margin. The CSI300 Index of China also ended flat after taking a late low to get it down 14.7 percent over the month.
The Shanghai Composite Index also suffered by 1 percent, taking its losses in the month of July to 13.4 percent even though the country’s authorities have employed support measures for the same.