Financial Markets…Global financial markets were on edge on Wednesday as investors awaited on U.S. debt deal. European stocks opened lower in morning trade after U.S. equities slumped yesterday following failed U.S. House plan to a debt-ceiling agreement, while Asian markets excluding Japan also suffered. Fitch Rating put U.S.’s AAA credit rating on negative watch yesterday, citing the government’s failure to avert the debt default as the deadline looms large. Nevertheless, many investors remained hopeful that U.S.
Financial Markets… German government securities advanced on Wednesday as lingering U.S. deadlock over the country’s debt ceiling bolstered the demand for safe-haven assets. Yields on benchmark 10-year German notes fell to 1.8%, heading for the lowest level in eight weeks. In contrast, U.S. Treasury rates climbed for a second day, with the 10-year note yield rising to 2.66%, as investors pulled the money out of the U.S. government assets amid rising risk of debt default.
Financial Markets…U.S. short-term government bonds have been sold, with yields on one-month Treasury bill climbing to their highest levels since August 2011 on Tuesday, as investor concern has intensified over the prospect of U.S. debt default. The 1-month T-bill rates rose to 0.22% today, rising above 1-month London interbank rate (0.17% in earlier trading) for the first time in at least 12 years. Meanwhile, the benchmark 10-year bond yield was down slightly at 2.63%.