In the United States, the yield of US Treasury securities exceeded the 3-percent mark, which may speed up inflation and increase deficit.
Experts believe that events on the debt market have brought down the American stock market and may cut the value of the Russian ruble further. The current situation may be caused by inflation expectations and prospects for the monetary policy of the US Federal Reserve System to tighten further.
As explained by investment analyst at Global FX Vladimir Rozhankovsky, nothing stops the Federal Reserve from raising the key interest rate. BCS Broker analyst Oksana Holodenko added that a sharp increase in yields of government bonds means a tightening of financial conditions, which may put pressure on the stock market. This is especially unpleasant for dividend-paying sectors, such as telecommunications and energy.
Against the backdrop of news from the debt market, US stock indices showed a negative trend. The Dow Jones index fell by 1.7%, S&P 500 lost 1.3%, Nasdaq fell by 1.7%.
According to Valery Mironov, Deputy Director of the Center for Development of the Higher School of Economics, investors will most likely continue withdrawing their capitals from Russia against the backdrop of possible new sanctions and weak exports.
Read article on the Russian version of Pravda.Ru