Oil prices surged following reports that Saudi Arabia told OPEC its production last month was the lowest since 1990. In the New York foreign exchange market on the 10th, the dollar rose to 154.67 yen against the yen before falling back to 153.85 yen and then recovering to close at 154.43 yen. The U.S. August producer price index showed accelerating growth, spurring dollar buying alongside rising long-term interest rates. The U.S. Treasury's expanded long-bond buyback ultimately totaled 5.19 billion dollars, falling short of 6 billion dollars, and the resulting disappointment pushed U.S. Treasury prices lower, further supporting dollar buying. The European Central Bank decided at its regular policy meeting to raise interest rates as markets expected, citing rising inflation risks, and euro buying prevailed.
ECB raised rates as expected citing rising inflation risks, lifting the policy rate/yield.
Accelerating US PPI and weak Treasury buyback pushed Treasury prices lower, raising the 10Y yield.
