Treasuries rose in New York after President Donald Trump said the war with Iran might end soon. This news changed the bond markets around the world.
Trump’s comments on Monday made oil prices fall below $90 a barrel. This gave some hope that high energy prices would not cause inflation, which means rising prices for goods. Yields on 10-year Treasuries, which show the interest for borrowing money, fell to about 4.09%.
Many global bond markets had been losing value, but the US government debt market improved. UK yields rose slightly at the end of the day. Traders think the Federal Reserve will not lower interest rates until September.
The Group of Seven finance ministers said they are ready to take steps to help the global energy supply. They can release oil reserves if needed, but they are not doing that now.
Earlier, there were worries about the economy as oil prices rose. If prices stay high, it could hurt economic growth.
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Vocabulary List:
6 words · tap to reveal
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AccentSpeed
Treasuries/ˈtrɛʒəriz/noun
Government bonds issued by the U.S. Treasury; debt securities investors buy to lend money to the government.
Yields/jiːldz/noun
The return on a bond or other investment often shown as an annual percentage; indicates the cost of borrowing.
Inflation/ɪnˈfleɪʃən/noun
A general increase in prices and a fall in the purchasing value of money.
Bond markets/bɑnd ˈmɑrkɪts/noun
Financial markets where debt securities (bonds) are issued bought and sold.
Reserves/rɪˈzɜrvz/noun
Supplies kept for future use; in this article stocks of oil held by governments that can be released if needed.
Energy supply/ˈɛnərdʒi səˈplaɪ/noun
The availability and distribution of energy (such as oil and gas) to meet demand in an economy or region.