Global Macroeconomics Team's blog
|Commodity agreements were put in place right after World War II and again following the 1970s commodity price boom. Price and trade restrictions encouraged the emergence of competitor products or the entry of new producers. As a result, all of these agreements, except those covering crude oil, eventually collapsed.|
Oil prices rallied on Thursday after Saudi Arabia and its allies started air strikes in Yemen, boosting demand for safe-haven assets from gold to Japanese yen. Brent crude surged more than $3 to close to $60 a barrel, and the price of U.S. crude saw a similar surge as it topped $51 a barrel. In the currency market, the dollar weakened against traditional safe-haven currencies such as the Swiss franc and the yen. Meanwhile, gold prices climbed 0.6% to pace gains among metals.
U.S. Treasuries advanced for a third day on Tuesday as U.S. inflation in February remained below the Federal Reserve’s 2% target, increasing bet the U.S. central bank won’t rush to hike interest rates. The yield on the benchmark 10-year note fell to as low as 1.894%, while the 30-year yield dropped to a six-week low of 2.49%. U.S. government bond have rallied since the Fed indicated last week it would raise policy rate at a slower pace than what the market anticipated.
Falling more-than-expected, U.S.first-time jobless claims dropped to 289,000 in the week ended March 7th, from the previous week's revised level of 325,000. Economists had expected jobless claims to pull back to 309,000 from the 320,000 originally reported for the previous week.