The entire world is on the verge of the most important event on the 2024 calendar. On November 5, the United States presidential elections will take place between Kamala Harris and Donald Trump. To this we must also add the meeting of the country’s Federal Reserve that will also take place next week and the latest employment data known this Friday.
The hurricanes and the Boeing strikes have led to the creation of only 12,000 new jobs in the American country during October, which constitutes the lowest figure since 2020when the entire economy was recovering from the blow of the pandemic.
With these two events around the corner and these new macroeconomic figures, investors have chosen to undo positions in the European and American fixed income marketwhich has caused a scenario of increased profitability. In Europe, the bundle German debt (German debt maturing in 10 years) once again places its profitability at maximum levels last Julyexperiencing increases in its yield of 11 basis points since Monday and placing it at 2.39%,
Even higher are the increases in peripheral bond countries, of 19 points and 14 points in the debts of Italy and Spain respectively. The yields of both papers return to the maximum levels of early September.
US fixed income
On the other side of the pond, investors have also chosen to sell US debt. The one known as T-Note (the debt maturing in 10 years) also returns to the levels of last July, in 4.33% profitabilityafter rising around 5 basis points this week.
“The US bond market faces a critical two-week period that will likely set its course for the rest of the year. Key developments begin with the Treasury’s announcement of upcoming debt sales and monthly payrolls data, which will indicate whether the economy is slowing down enough to justify new Fed cuts,” they explain in this sense from eToro.
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