Around 11:20 am in Lisbon, the euro was trading at $1.1281, down from $1.1330 at the close of the previous day’s European currency trading session.

Yields on 10-year U.S. Treasury bonds rose to 5.34%, their highest level in 24 years, while 30-year bond yields reached 5.68%, also a 24-year high.

Other Federal Reserve (Fed) officials have signalled support for further interest rate hikes, despite U.S. inflation figures for August coming in better than expected.

U.S. consumer prices rose 3.4% in August, below expectations, and core inflation (excluding energy and food) rose 3%, also below expectations.

However, Minneapolis Federal Reserve Bank President Neel Kashkari stated that inflationary pressures remain high and that the consumer price data had not “changed that situation much.”

Investors are also concerned about the widening yield spread between German and French sovereign debt.

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