U.S. five-year yield offered by Treasuries

FOREX, DAILY ANALYSIS

General Market News –  European Session

U.S. five-year yield offered by Treasuries, climbed to the highest level in 16 years over their German counterparts widening their difference to 1.81 percentage points due to the divergence in monetary policies between Federal Reserve and European Central Bank. Federal Reserve officials debate whether to raise interest rates at their December meeting, while European policy makers contemplate adding stimulus. On concern that recent gains were overdone, technology companies tumbled causing China’s stocks to fell driving the benchmark index to record its biggest loss in more than a week. Meanwhile, fiscal spending jumped to 36.1 in October while revenue rose to 8.7 percent causing government to face increasing pressures. In addition, speculations that failures among lower-rated borrowers may spread after a default by a cement maker, drove Chinese investors to show a preference for the safest corporate debt. Australian unemployment rate fell unexpectedly in October causing Aussie to jump the most in five weeks and government bonds to slump, while chances of RBA cutting rates near term diminished.......