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28 February

By Ahmed Mamdouh

Category: FX Graph

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US, euro area yield spread hits the highest level since 1999

The U.S./euro area 2-year yield spread widened to the highest level since the inception of the euro in 1999 on prospects of quick pace of rate hikes by the Federal Reserve this year.

The spread is currently close to 280 bps amid speculations the Fed could raise borrowing cost four times this year.

The new head of the Fed Jerome Powell cited optimism about the world’s biggest economy during his Congressional testimony on Tuesday.

U.S. 10-year Treasury yield edged down 0.12 percent to 2.904 after climbing to a top of 2.925 on Tuesday.

The dollar index resumed its advance for a second straight session to 90.44 after adding 0.7 percent the previous session.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at D1stp.com, with 9 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.