After a disappointing monthly result for the US housing market, the US dollar remained weak as oil continued its freefall due to the existing oversupply available. According to a report from en-maktoob.news.yahoo.com, the Asian markets retreated last Monday as investors await the next move of the US Federal Reserve's plans on the interest rate.

Asian investors followed the lead of their American counterparts who continued to dump investments as the latest data indicated that sales of single family homes had declined in June and May at much lower numbers than earlier reported. The focus now though is the impending policy meeting of the Fed scheduled for this week. The projections is that rates would not be raised as of the moment, but there is an expectation of rate hikes come September or December.

Oil had continued on its downtrend, as demand decreased due to the continued slowdown of the Chinese economy, a relative weakness in Europe and the flood of Iranian oil into the markets resulting in an oil glut.

According to a report from afr.com, Federal Reserve chairperson Janet Yellen told the US Senate Banking Committee just last week of her expectation to raise rates in 2015 for the first time since 2006. The increases, according to her, would be a gradual pace leading to the set rate.

This would certainly affect longer dated government bonds issued, as the pronouncement had the US dollar gain against other currencies. The Bloomberg Dollar Spot Index had pegged 0.2 percent additional to the current rate of 1209.50 after reaching a high of 1212.78 in March.

According to AMP Capital Investors Ltd's Shane Oliver, "Share markets are likely to remain volatile as we still are going through a seasonally weak period of the year for shares. Uncertainties remain regarding Chinese economic growth and a likely Fed interest rate hike lies for later this year."