Benchmark yields hit highest since 2008, but fall back after intervention by the Bank of England to support gilts sparked a rally across the bond markets
Benchmark Treasury yields breached 4% for the first time since 2008, but fell back after intervention by the Bank of England to support gilts sparked a broad rally across sovereign bond markets.
What’s happening What’s driving markets The 10-year Treasury yield touched 4.010% in the early hours of Wednesday, its highest in 14 years, after a batch of U.S. economic reports came in stronger than forecast on Tuesday, reinforcing expectations that the Federal Reserve will persevere with its aggressive pace of interest rate hikes as it battles rampant inflation.
Hal Cook, senior investment analyst at Hargreaves Lansdown, noted that with the exception of Japan, most developed economy central banks “have raised rates simultaneously and consistently, with this trend expected to continue.” Investors had dumped U.K. government bonds in recent days in response to what they deemed a dangerously profligate budget by new finance minister Kwasi Kwarteng.
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.
U.S. mortgage interest rates reach all time high since 2008The state of Arizona is facing inflation head on and is experiencing a greater amount of rising mortgage rates compared to everywhere else in the country.
Read more »
Gilt yields jump to highest since 2008 crisis after IMF hits out at U.K. budgetBank of England says inflation pressures may cause it to raise interest rates further
Read more »
USD/CNY to be back at 7 by end-2023 after reaching 7.35 in Q2 2023 – RabobankThe yuan has seen its weakest valuation against the US dollar since 2008. Economists at Rabobank expect the USD/CNY to peak at 7.35 by the second quar
Read more »
Why Trump has taken a sudden interest in George W. Bush’s emailsWhy would Donald Trump take an interest in a 2008 controversy about missing emails? Because he can't find a real defense for his Mar-a-Lago scandal.
Read more »