The yield on the benchmark ten-year US Treasury bond fell by almost seven basis points to dip below 1.3 per cent last night after American consumer sentiment dropped to its lowest level since 2011.
The University of Michigan index of consumer confidence fell by 13.5 per cent in the month to mid-August, dipping beyond the lows reached in April 2020 when the pandemic took hold.
The index fell to 70.2 in the first half of this month from a final reading of 81.2 in July. There have been only two larger declines in the index over the past 50 years, first in the depths of the 2007-09 recession and then during the first wave of shutdowns last year.
The unexpectedly sharp fall in consumer confidence
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