The U.S. 10-year bond yields have fallen from a 12-year high, and the U.S. Dollar index has fallen from a record high, boosting the Dow Jones Industrial Average by almost 500 points.
World financial markets led by Dow Jones Industrial Average have cheered as U.S. 10-Year treasury bond yields tumble nearly 6% from the 12-year high of 4.019 today. Also, the U.S. Dollar Index has given up all gains from the multi-year record high of 114.725, resulting massive short covering across Europe and U.S. financial markets. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq composite are up nearly 1.5% each recovering all intraday losses.
Today the Bank of England announced it would buy U.K. government bonds to stabilize the slump in the pound against the U.S. Dollar index. European markets also reacted very sharply to this news and closed on a positive note from the 52-week low made by the German Stock Index DAX 40 and French stock Index CAC 40 today. While writing this article, all Asian futures are also showing good traction of 1.5-2% followed by Nifty future SGX NIFTY is around 1% up. Base metals and crude oil futures are also roaring pushing short sellers to the back foot where Copper and Brent futures souring 3% each.
