For its part, Wall Street showed increases of up to 3% after trading at lows in July 2020. Meanwhile, Dow Jones and S&P500 futures fell 2%. US stocks, which recovered earlier this week, are reacting uneasily after news that inflation hit 8.3% year-on-year.
The return on benchmark 10-year notes rose to 4.08%, its highest level since October 2008 and then traded 3.7 basis points higher at 3.939%.
Two-year bond yields, which typically move in step with rate expectations, rose 14.3 basis points to a 15-year high of 4.430%.
The differential between the yield on two-year and 10-year notes, seen as a harbinger of recession, widened to -48.3 basis points.
“The numbers were clearly very bad,” he said. Andrzej Skiba, from RBC Global Asset Management in dialogue with Reuters. “It highlights this situation where inflation is almost always higher than expected, forcing the Fed to move the archposts again.”
This week also saw the Fed monetary policy meeting notesin which it was made clear that the policy of aggressive rate hikes will continue until inflation is contained.
Source: Ambito
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