The yield on government bonds worldwide began to decrease at the start of the last week of July, and the yield on 10-year US treasury bonds fell to 3.81% amidst increasing concerns about the state of the global economy, as traders prepare for key interest rate decisions from the Federal Reserve, the European Central Bank, and the Bank of Japan.
This is reported by Trading Economics.
"Flash PMIs for the biggest European economies and Japan disappointed while an inconclusive outcome in the Spanish election on Sunday increased the risk-off mood," analysts say.
Meanwhile, both the Federal Reserve and the European Central Bank plan to raise interest rates by another 25bps later this week, while the Bank of Japan is expected to maintain its ultra-soft monetary policy.
Background. Mind previously reported that former Federal Reserve Chairman Bill Dudley forecasted that the rate increase in July could be the last in the near future.