US Treasuries

China urged the US to enter “responsible” measures to increase market confidence in the dollar and US government debt.

A Chinese currency regulator called upon US leaders amid their efforts to develop an 11th-hour deal to raise a $14.3 trillion debt ceiling for the United States before it runs out of money to cover all its bills on August 2.

On Monday after the announcement that China let the yuan rise to the highest since July 2005 stocks and commodities jumped while US Treasuries fell which eased tension between Beijing and Western economies.

The reports revealed that European stock futures increased by 2.2% and US stock futures were also near highs for the day. The move resulted in higher confidence on the part of investors in global recovery.

Thus, the yuan was increased to as high as 6.8015 against the dollar, or up 0.38%, the highest since it revaluation five years ago.