The yield on two-year Treasury bills, which are sensitive to interest rate expectations, spiked to levels last seen in July 2007as the market perceived that the Fed will raise rates further to control inflation.
“This move higher that you are seeing in US rates is not happening in isolation,” said Alvise Marino, macro trading strategist at Credit Suisse in New York, adding: “Similar developments are happening in the rest of the world, I feel particularly noteworthy. in Europe, where inflation data continues to surprise relatively strong”.
Atlanta Federal Reserve Chairman Raphael Bostic said Thursday that the us central bank was ready to continue raising rates if inflation does not slow down and was still considering how recent stronger-than-expected inflation data might affect Fed policy.
The number of Americans filing new claims for unemployment benefits fell again last week, pointing to a still strong job market. Another report from the Labor Department showed that labor costs grew much faster than previously estimated in the fourth quarter.
Market reaction was initially subdued after the euro rose 0.9% against the dollar on Wednesday, its biggest one-day gain in a month, after German inflation rose more than expected in February.
Sterling was held back by remarks from Bank of England Governor Andrew Bailey, who said “nothing is decided” on future rate hikes, causing traders to cut bets on higher rates. The pound lost 0.76% to $1.194.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
