(Bloomberg) — Defying their stock-market counterparts, Treasury traders aren’t buying Jerome Powell’s upbeat pronouncements on growth. In fact, in the aftermath of Wednesday’s policy decision, one bond-market indicator of economic hardship is flashing red for the first time since the darkest days of the pandemic. After the Federal Reserve raised interest rates and signaled hikes […]
Read More(Bloomberg) — Bond traders are virtually certain the Federal Reserve will raise interest rates by a quarter percentage point on Wednesday. What they’re watching for is where the central bank is heading after that. Two-year Treasury yields, which are highly sensitive to monetary policy changes, have already climbed to the highest since September 2019 with […]
Read More(Bloomberg) — Treasuries fell Monday to extend this month’s rout in global developed-market bonds as investors anticipate the inflationary impacts of the war in Ukraine will spur aggressive monetary tightening. Five-year yields rose six basis points to surpass 2% for the first time since May 2019, while 10-year yields climbed four basis points to 2.04%. […]
Read More(Bloomberg) — As Wall Street starts to tally the market damage triggered by Russia’s invasion of Ukraine, a big bond fund run by Franklin Resources Inc. is emerging as an early loser. The Western Asset Core Plus Bond Fund, with $37 billion of U.S. mutual fund assets, declined more than 8% this year and about […]
Read More(Bloomberg) — After a tumultuous week of big yield swings and heightened volatility in the U.S. Treasury market, investors are bracing for another hot inflation report, while the war in Ukraine increasingly casts a pall over Europe and the global economy. Russia’s Feb. 24 invasion of Ukraine began to rewrite the script for U.S. bond […]
Read More(Bloomberg) — Investors may be underestimating the need for “aggressive” monetary tightening from the Federal Reserve and other central banks to combat inflation, resulting in “significant risks” for markets, according to Bridgewater Associates. Following hawkish comments from the Fed Chair Jerome Powell last week, investors have brought forward expectations of tightening, pricing in five quarter-point […]
Read More(Bloomberg) — To many on Wall Street, the painful selloff that’s been racing through the Treasury market this month is only the opening act. On Wednesday, Federal Reserve Chair Jerome Powell’s hawkish tone added fuel to the rout after he said the bank is poised to start raising interest rates in March, sending two-year Treasury […]
Read More(Bloomberg) — Wall Street’s biggest banks are expected to hit the corporate bond market after they report quarterly results in an effort to raise money before the Federal Reserve knocks borrowing costs higher. JPMorgan Chase & Co. credit research analysts Kabir Caprihan and Nikita Dyatlov expect big banks to borrow a combined $24 billion to […]
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