In parallel, the two-year bond yield, which typically moves in line with interest rate expectations, was 2.6 basis points at 0.896%, after hitting 0.91%, its highest level since March 3, 2020.
A tight labor market and rising inflation have strengthened expectations that the central bank will become more aggressive in raising rates and reducing its balance sheet.
Goldman Sachs expects the Fed to raise rates four times in 2022, compared to its previous forecast of three, in line with analyst opinion at JP Morgan and Deutsche Bank.
Richmond Fed Chairman Thomas Barkin said Monday that the central bank could conceivably raise rates in March, according to the Wall Street Journal.
Meanwhile, the main Wall Street indices are trading sharply as the tech heavyweights fell on expectations of a higher interest rate environment, with the big banks backed by rising yields on US bonds. Treasure.
The Nasdaq benchmark, which brings together the papers of the main technology companies, fell 2.2%. Megacap companies including Apple, Amazon.com, Microsoft, Meta Platforms and Tesla lost between 2.1% and 4.4%.
For its part, the S & P500 fell 1.6%, with losses led by the sectors of consumer discretionary, technology and communication services. While the bank index, oriented to the value, reached a record before declining slightly.
In this context, The dollar index, which measures the performance of the greenback against six pairs, gained 0.4% to 96.15, to stay close to the 16-month high it hit at the end of November.
Investors will be watching inflation data and testimony from Federal Reserve Chairman Jerome Powell and Central Bank Governor Lael Brainard this week for clues about the timing and speed of rate hikes.
December consumer inflation data for the United States will be released on Wednesday, and the headline CPI is forecast to hit 7% yoy, strengthening the case for interest rates rising sooner rather than later.
Source From: Ambito
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