U.S. Treasury yields climbed to their highest levels since 2023, reflecting mounting concerns about federal debt sustainability, potential trade policy shifts under Trump, and weak participation in recent bond auctions.
The 30-year yield exceeded 5.10%, and the 10-year topped 4.6%, suggesting heightened investor demands for returns amid elevated fiscal risks. The tepid response to the latest 20-year auction—requiring a 5.05% yield—underscores this wariness, especially in light of Moody’s downgrade of the U.S. credit rating to AA1.
Caution Prevails Across U.S. Assets
The upward pressure on yields is fueled by a worsening fiscal outlook, inflationary concerns linked to tariff risks, and continued hawkish tones from the Federal Reserve. These dynamics are contributing to broader risk aversion toward U.S. assets.
Should fiscal uncertainty deepen, capital flight from U.S. markets could accelerate, potentially dragging down the dollar and equity valuations.
Gold Finds Structural Support Above $3000
Gold appears to have entered a new structural range above $3000, supported by recent market activity. Prices maintained strength this week, reinforcing long-term bullish sentiment.
Technically, staying above $3270 sustains the bullish trajectory, though resistance near $3350 could pose short-term hurdles. Intraday signals suggest further upside potential, though a consolidation near $3350 is possible before any breakout.
U.S. Dollar Weakness Deepens
Expectations of a recovery in the U.S. Dollar have faded. The DXY index has dropped below the 100 mark, and key moving averages now point to sustained downside momentum.
Fundamentally, ongoing credit concerns, rising yields, and shaken investor confidence weigh heavily on the Dollar. Without a meaningful policy shift or economic surprise, downward pressure is likely to continue.
USDJPY Eyes Critical 145 Support
USDJPY continues to face stiff resistance at the 148.00 level. In the short term, traders are watching the 145.00 support—should it break, downside momentum could build, possibly targeting the 140.00 region.
