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      US Treasury Purchases and Oil Prices Surge Amid Economic Indicators

      The US Treasury has purchased $5.187 billion in 10-20 year notes and sold $22 billion of 30-year bonds at a high yield of 5.308%. This activity comes as the US Energy Information Administration reported a decrease in crude oil inventories by 391,000 barrels, contrasting with expectations of a decline of 1.554 million barrels. The price of West Texas Intermediate (WTI) crude oil surged by 7%, reaching $102.72 per barrel, driven by concerns over supply amid geopolitical tensions.

      Economic indicators showed mixed results, with US wholesale inventories rising by 1.3%, aligning with forecasts. Existing home sales for August matched expectations at 3.98 million units. The Producer Price Index (PPI) for August increased by 5.4%, slightly above the anticipated 5.3%, raising concerns ahead of the upcoming Consumer Price Index (CPI) report. Initial jobless claims remained steady at 206,000, close to the estimated 205,000, indicating a stable employment picture.

      European Central Bank President Christine Lagarde announced a 25 basis point interest rate hike, which was anticipated by markets. Lagarde highlighted the resilience of the economy, contributing to a hawkish outlook for future rate adjustments by the Federal Reserve. The US dollar strengthened, while the Australian dollar faced pressure due to falling metal prices and increased risk aversion.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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