Forex
US Treasury Yields Steepen Amid Iran Negotiations Volatility
US Treasury yields saw volatility last week as investors assessed developments in US-Iran negotiations. The curve steepened, with the front end rallying while the long-end remained under pressure. The 30-year yield rose above 5.50%.
The US dollar weakened against most G10 currencies, with the yen outperforming due to Japanese and US officials' concern about its recent weakness. Brent crude fell towards $104 per barrel amid renewed optimism that US and Iranian negotiators could reach a phased agreement.
Consumer sentiment data broadly met expectations, while August durable goods orders reinforced the picture of strong US business investment. The market impact was modest, however, given the volatility of the data.