Treasuries, gold extend losses as oil rallies
United States government bonds continued recording losses on Wednesday as oil prices kept rising after the Organization of Petroleum Exporting Countries (OPEC) said it reached an agreement to cut crude production during today's meeting.
The yield on 10-year Treasuries, which moves inversely to the security's price, climbed to 2.39% at 5:16 p.m. CET, while the yield on two-year bonds jumped to 1.1249%. The yield on 30-year debt surged to 3.0722% at the same time after president-elect Donald Trump's Treasury secretary pick Steven Mnuchin indicated earlier today the U.S. government would seek to ramp up issuance of longer-term debt. Across the Atlantic, the yield on 10-year British gilts increased to 1.424% and the yield on German Bunds of the same maturity rallied to 0.28%.
As government bonds fall out of favor, so does gold, which dropped 1.35% to $1,172.79 per ounce at 5:25 p.m. CET. Meanwhile, the dollar rocketed 0.75% against the euro, changing hands at 1.05653 at 5:26 p.m. CET, and advanced 0.14% compared to the British pound to go for 1.2476. It jumped 1.67% versus the Japanese yen and 0.68% against the Swiss franc at the same time.