Global bond yields are surging after a bigger-than-expected jump in U.S. inflation revived concerns that central banks will be forced to start raising interest rates sooner than traders anticipate.
. The rout was further fueled by a weak auction of 30-year Treasuries, as yields climbed back near levels seen ahead of Powell’s remarks.
Still, the jump in Treasury yields didn’t appear to herald a major reconsideration of the Fed’s approach to monetary policy, and other sell-offs have been short-lived as investors came in and bought the dips.Money-market traders moved forward their bets for the Fed’s first hike by two months to July, although they’re only pricing in about two quarter-point increases in 2022, signaling little concern the bank will find itself fighting against runway inflation.
“We are finding out that we cannot ignore this inflation problem,” Goncalves said. “Risks are growing that rates will become more volatile and potentially heading higher ahead, just not in one go. It was a shot across the bow.”Yields across much of the U.S. curve leaped more than 10 basis points on the day, with those in the so-called belly — around 5-to-7 years — seeing the biggest jumps. The dollar gained 0.9%, the biggest advance since December.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Rand loses steam before crucial US CPI dataThe local currency sagged slightly against the dollar on Wednesday morning, ending a four-day winning streak
Read more »
Gold slips as focus turns to US CPI dataMetal falls as investors await US inflation data that could have a bearing on the Federal Reserve’s next policy move
Read more »
Global markets steady as oil rallies ahead of US CPI dataUS prices for October are forecast to have risen well above the Fed’s target, but markets see this as temporary
Read more »
Original Apple computer built by Jobs and Wozniak sells for $400kAn original Apple computer, hand-built by company founders Steve Jobs and Steve Wozniak 45 years ago, sold for $400,000 at auction.
Read more »
Asian stocks unchanged as traders fret about US inflationMarkets are becalmed as surges in oil and Chinese factory prices add to the worry that US inflation is running hotter for longer than expected
Read more »
Responsible use of personal loans can help advance livesSPONSORED | OldMutualSA A credit score is what determines whether a lender regards you as a good risk. The better your credit score, the more likely you are to get a loan and even qualify for a lower interest rate.
Read more »