Dollar And Treasuries Tumble As ECB Raises Rates

Thursday’s economic calendar was

with only the release of Initial Jobless Claims —
which rose more than expected


Treasuries fell sharply after the ECB raised
interest rates. The yield on the 10-yr T-note hit the highest level since July
2002. 5yr yields moved to their highest level since April 02 and 2yr yields
tested last week’s high — the highest level since February 01.

The Euro rallied strongly against the Dollar (+1.06%), Yen
(+0.79%) and GBP (+0.78%) on the back of the ECB decision. The Dollar fell
versus all the major pairs and the US Dollar Index lost -0.75%.

Energy prices rose, with Crude Oil closing above $63 for the first time in
almost a month. Natural Gas was the exception, closing flat in choppy trade
after today’s data on stockpiles.

Silver surged above $10 an ounce for the first time since March 1984 and Gold
closed above $570.

In the softs, Lumber (+1.93%) was strong, while Coffee (-1.87%) was weak.

All the grains closed higher, with the Soybean complex leading the advance. Lean
Hogs and Pork Bellies were weak in the meats.

Economic News

Initial Jobless Claims Up 15,000 To 294,000 (report).

EIA – Natural Gas Stockpiles Down 171 Bln. Cubic Feet

Ashton Dorkins

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