The whole world is on the verge of the most important event on the 2024 calendar. On November 5, the American presidential election between Kamala Harris and Donald Trump will take place. To this we must also add the meeting of the country’s Federal Reserve which will also take place next week and the latest employment data known this Friday.
Hurricanes and Boeing strikes led to the creation of only 12,000 new jobs in the United States during the month of October, which is a number the lowest figure since 2020as the entire economy recovered from the blow of the pandemic.
With these two approaching events and these new macroeconomic figures, investors have chosen to cancel positions on the European and American bond marketwhich caused a scenario of increased profitability. In Europe, the pack German debt (German debt maturing in 10 years) regains its place its profitability at its maximum last Julyexperiencing increases in its yield of 11 basis points since Monday and placing it at 2.39%,
The increases in the bonds of peripheral countries are even higher, by 19 points and 14 points respectively for the debts of Italy and Spain. Yields on both stocks return to peak levels in early September.
US Fixed Income
On the other side of the Atlantic, investors also chose to sell American debt. The one known as T-note (the debt maturing in 10 years) also returned to the levels of last July, in Profitability of 4.33%after rising about 5 basis points this week.
“The U.S. bond market faces a critical two-week period that will likely determine its course for the rest of the year. Key developments begin with the Treasury’s announcement of upcoming debt sales and monthly bond data salary, which will indicate whether the economy is slowing down enough to justify further cuts by the Fed”, they explain in this sense at eToro.
