Latest news with #U.S.Treasuries
Business Recorder
2 days ago
- Business
- Business Recorder
South African rand slightly weaker, local politics could provide support
JOHANNESBURG: The South African rand was slightly weaker on Tuesday, but analysts said local political developments could lend it support in the coming days. At 0745 GMT, the rand traded at 17.64 against the dollar, down 0.1% on Monday's closing level. The dollar was up 0.1% against a basket of global currencies. On Monday, President Cyril Ramaphosa removed a minister accused of misconduct by his party's key coalition partner, which could defuse tensions between the two main governing parties before a budget vote on Wednesday. The budget has been held up by months of political wrangling, but Wednesday's vote on the Appropriation Bill is the final hurdle for it to pass. Morgan Stanley said it had turned more bullish on South African government debt in the wake of the minister's removal. It said it now viewed South Africa's spreads - the premium investors demand to buy South African bonds rather than benchmark debt like U.S. Treasuries - as attractive compared with countries with similar credit ratings. South Africa's benchmark 2035 government bond was stronger on Tuesday, as the yield fell 9 basis points to 9.895%. Markets reacted little to a decline in a central bank business cycle indicator that gauges the economic outlook. The leading indicator fell 1.3% month-on-month in May, following a 0.6% decrease in April.
Business Insider
2 days ago
- Business
- Business Insider
Investors Buy European Bonds at Fastest Pace in a Decade amid Shift Away from U.S. Treasuries
Investors around the world are buying a growing number of European bonds as they move away from U.S. Treasuries, says Citigroup (C). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to an analysis by Citigroup, which is based on European Central Bank (ECB) data, European bonds saw nearly 100 billion Euros (US$116.4 billion) of buying from outside the continent in May, the largest amount in more than a decade. Analysts at Citigroup, which is one of the largest U.S. commercial banks, say the data shows that European assets are benefiting from a move away from U.S. Treasuries and markets. The 100 billion Euros of net inflows into European bonds with maturities longer than one year that was seen in May were the largest on a monthly basis since 2014, says Citigroup. Loss of Confidence Allocation away from U.S. to European assets has been a big theme across financial markets in recent months as investor confidence in America is shaken by trade policies and rising debt. 'This could potentially be due to substitution out of dollar assets,' Citigroup wrote in a note to clients. President Donald Trump's confrontations with longstanding allies over trade and security, along with attacks on the U.S. Federal Reserve, have raised concerns about the safety and reliability of U.S. Treasuries. In contrast, European bonds have traded more steadily, boosting their appeal to investors as an asset that is perceived to be safe and secure. U.S. 30-year yields are up 40 basis points since April 2 when Trump announced his tariffs on foreign nations around the world, while German equivalents are up fewer than 20 basis points. Citigroup said it will scrutinize the June data on European bond buying that is scheduled to be released Aug. 18, which should help it to draw firmer conclusions about global investment flows. Is the Vanguard Total Bond Market ETF a Buy? (BND). So instead, we'll look at its three-month performance. As one can see in the chart below, the BND ETF has risen 0.65% in the past 12 weeks.
Business Recorder
2 days ago
- Business
- Business Recorder
Indian bond yields expected to show a slight decline
MUMBAI: Indian government bond yields are expected to move with a dipping bias in early deals on Tuesday, as chatter about one more rate cut from the central bank continue to support. The yield on the benchmark 10-year bond is likely to trade between 6.29% and 6.32%, a trader at a private bank said, after closing at 6.2996% on Monday. The 15-year 6.68% 2040 bond ended at 6.6105%. 'Though there is some move in U.S. Treasuries, local market will be completely unaffected by it, and like yesterday, we could see more movement in other longer duration papers rather than the benchmark and 2034 paper,' the trader said. U.S. yields fell, with the 10-year yield moving below 4.35% amid worries over impact of tariffs. Back home, a plunge in India's retail inflation rate to 2.10% in June, the slowest pace in more than six years, has led to increased talk of an interest rate cut next month. An estimated drop in inflation to a record low in July is further pushing up rate cut calls. The central bank slashed its key interest rate by 50 basis points last month, while changing its stance to 'neutral' from 'accommodative', which had fuelled speculation that the rate-cut cycle may already be over. The next monetary policy decision from the central bank is due on August 6, with some not ruling out a rate action. Downward revision in inflation opens up room for further easing when growth is showing a somewhat downside bias. August would be an appropriate time for a 25-bps cut, given the muted inflation scenario, analysts at ICICI Bank said in a note.
See - Sada Elbalad
3 days ago
- Business
- See - Sada Elbalad
Silver Continues Rally Amid Global Tensions and Rate Cut Expectations
Waleed Farouk Silver prices witnessed notable fluctuations in the local market over the past week, influenced by volatile movements on global exchanges. The metal touched its highest level in over 14 years before retreating due to profit-taking by some investors. Local Market Performance In the local market, the price of 800-purity silver ranged between EGP 52 and EGP 53 per gram before settling back at EGP 52 by the end of the week. The 999-purity silver was priced at EGP 65 per gram, while 925-purity silver stood at EGP 60. The price of a silver pound coin (925) is recorded at around EGP 480. Global Market Movements Globally, silver opened the week at $38.32 per ounce, rose to a peak of $39.13 — the highest since 2011 — then declined to $37.65, and finally closed the week at $38.11, marking a slight weekly drop of $0.11. Strong Performance Year-to-Date Since the beginning of 2025, silver prices have surged 27% in the local market, with the 800-purity silver rising by EGP 11 after starting the year at EGP 41. On the global front, the metal has jumped 32%, climbing from $29 to $38.11 per ounce, outperforming most other precious metals over the same period. Despite the recent slight pullback, the overall trend remains bullish. Silver is currently trading above short-term price averages, indicating continued buying momentum in the market. External Drivers Supporting Silver's Rally Several external factors have contributed to silver's upward trajectory this week, including: Falling U.S. Bond Yields The yield on 10-year U.S. Treasuries fell to 4.42%, while 2-year yields dropped to 3.87%, reducing the opportunity cost of holding non-yielding assets like precious metals, and boosting silver's appeal among institutional investors. Rising Expectations of Rate Cuts Federal Reserve Governor Christopher Waller called for early action on interest rate cuts, possibly as soon as July, citing signs of weakness in the private labor market. Markets are now pricing in a 45-basis-point cut by year-end, with the first move expected in September. Dollar Weakness The U.S. Dollar Index closed at 98.462, down 0.16% in the last session, despite weekly gains. The decline was driven by falling bond yields, mixed inflation data, and growing political pressure on Fed Chair Jerome Powell. Escalating Global Trade Tensions President Donald Trump reignited trade fears by threatening to impose tariffs of 15% to 20% on European goods. Additionally, trade negotiations with both Japan and Indonesia remain stalled, adding to global economic uncertainty. Can Silver Sustain Its Momentum? According to analysts at Citibank, silver's strong rally, especially since April, points to further upside potential. The bank forecasts prices reaching $40 within the next 6 to 12 months, and possibly hitting $46 by Q3 2025, supported by increasing industrial demand, tightening global supply, and ongoing geopolitical and monetary uncertainty. Some analysts also argue that silver remains undervalued based on the gold-to-silver ratio, which currently stands at around 87.3 compared to the historical average of 53. A return to this average, assuming gold prices remain steady, would suggest silver should trade above $63 per ounce — a 65% increase from current levels. Historically, silver's 1980 peak would equate to around $197 per ounce in today's dollars, while its 2011 surge saw prices near $71, implying that silver still has substantial room to rise from current levels near $38.40. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters News China Launches Largest Ever Aircraft Carrier Arts & Culture "Jurassic World Rebirth" Gets Streaming Date Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" Sports Get to Know 2025 WWE Evolution Results News Flights suspended at Port Sudan Airport after Drone Attacks
Yahoo
16-07-2025
- Business
- Yahoo
3 Reasons Why XRP (Ripple) Will Probably Outperform Shiba Inu This Summer
XRP has a lot of new features and new users. Shiba Inu doesn't. The gap is only going to get wider over time. 10 stocks we like better than XRP › Two kinds of cryptocurrencies tend to dominate headlines. One group, meme coins, exist mainly as jokes that are funny for as long as their price continues to rise. The other group, which goes by many different names, runs quietly and seeks to find a home as part of the plumbing layer of international finance, powering key financial systems while nobody is looking. Enter XRP (CRYPTO: XRP) and Shiba Inu (CRYPTO: SHIB). Both have a habit of rallying hard, yet their next three months and beyond will hinge on very different engines of value creation -- or lack thereof, in Shiba Inu's case. Here are three reasons XRP's chances look significantly stronger in both the near term and the long term. One big advantage that XRP has is that it's issued by a company called Ripple, which is responsible for the development of the XRP Ledger (XRPL) and thus the chain's usage and its ecosystem. Every time Ripple's on-demand-liquidity (ODL) customers bridge currencies, the system automatically sources XRP, holds it for seconds, and releases the target fiat currency on the other side. Ripple's latest markets report shows institutions pulled in $37.7 million of net XRP inflows to investments related to the coin in Q1 alone. In other words, Ripple is bringing in real value as a result of XRP. And it's just getting started. The ledger recently rolled out five fiat-backed stablecoins and live trading for tokenized U.S. Treasuries via Ondo Finance's platform. The reason that's bullish is that investors who want 24/7 Treasury bill exposure on the blockchain must hold either Ripple's main stablecoin or XRP to settle their transactions, creating continuous, purpose-driven demand. Shiba Inu, in contrast, has no utility at all, and generates zero revenue. Its only supply control is token burning funded mostly by community enthusiasm, which is fickle. Burns reduce float, but unless users must own the token to accomplish a task, burns simply shrink a pool of coins that might never have mattered. Ripple's pitch for XRP lands with the very crowd that meme tokens will never reach: cautious banks and asset managers. Numerous institutional investors and financial industry players are onboarding their financial plumbing to the ledger. Similarly, pending U.S. XRP exchange-traded fund (ETF) applications could hand those same players a turnkey wrapper for onboarding capital they already manage. And, overall, the regulatory environment is de-risking using cryptocurrencies like XRP for real financial work. Meanwhile, Shiba Inu is not exposed to the same set of institutional tailwinds. In fact, large-holder transaction volume collapsed 74% in late May as whales stepped away, draining 80% of its liquidity in a month. Passion alone can spark short-lived spikes, but when institutional allocators look for yield-bearing, compliance-ready rails, they have a good chance of landing on XRP, and zero chances of landing on a dog-themed coin built for memes. The final reason that XRP will likely outperform Shiba Inu is that it's constantly getting technology upgrades that make it more appealing to the users it's courting. Two weeks ago, XRPL shipped its latest version, introducing permissioned decentralized exchanges (DEXs), token escrow upgrades, and batch transactions, all of which are table-stakes features for regulated finance to dabble with the chain. Ripple also funds grants, runs global hackathons, and just lit up an Ethereum virtual machine (EVM) sidechain so Ethereum developers can port their apps without leaving the ecosystem. In contrast, the Shiba Inu L2 platform, Shibarium, still leans on Ethereum for gas fees and bridging, creating friction exactly where low-fee usability counts most. Planned privacy upgrades remain delayed, and the "metaverse" tie-ins that once buoyed hype have no firm ship date -- nor is it likely they have real utility, considering the graveyard of other abandoned metaverse projects in the tech sector. Put bluntly, XRP's ledger keeps getting more and more feature-complete for bankers, while the Shibarium is still patching the roof between meme rallies. There's no contest here. Why that matters for price action over the next 90 days is simple. New catalysts attract fresh capital, and fresh capital sets higher floors. Assuming markets stay sideways, the coin with active integrations, rising institutional inflows, and a clear development roadmap should outpace the token leaning on community conviction alone. That coin is XRP. Investors chasing upside here should avoid meme exposure and let real utility do the heavy lifting. Before you buy stock in XRP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and XRP wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Alex Carchidi has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum and XRP. The Motley Fool has a disclosure policy. 3 Reasons Why XRP (Ripple) Will Probably Outperform Shiba Inu This Summer was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
