On Friday the dollar rise, giving an extension to the previous day’s gains as investors retreated from riskier assets, taking the shine off higher-yielding currencies such as the Australian dollar.
Tokyo’s Nikkei
Today Tokyo’s Nikkei average fell 0.5% and after the U.S. S&P 500 index suffered its worst one-day percentage fall in three weeks on Thursday, it has logged its first four-week losing streak in over a year. On Friday U.S. futures SPc1 were lower.
Banks parked funds into safe-haven assets
Investors reduced dollar short positions, and as banks parked funds into safe-haven assets such as U.S. government bonds so the greenback was also supported.
Three-month and six-month bills
On Thursday rates on short-dated U.S. government paper has dropped, with the 2-year bond yield falling to the year’s low of 0.68%. It has been said by the traders that the three-month bills traded near 1 basis point and six-month bills fell to near record lows.
