{"id":651,"date":"2023-02-11T14:01:51","date_gmt":"2023-02-11T19:01:51","guid":{"rendered":"https:\/\/embarrdowns.com\/global-bond-tumble-as-rate-hike-speculation-intensifies\/"},"modified":"2023-02-11T14:01:51","modified_gmt":"2023-02-11T19:01:51","slug":"global-bond-tumble-as-rate-hike-speculation-intensifies","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/global-bond-tumble-as-rate-hike-speculation-intensifies\/","title":{"rendered":"Global Bond Tumble as Rate Hike Speculation Intensifies"},"content":{"rendered":"

Global bonds continued to tumble this week as a string of policymakers told investors to expect further rate hikes, pushing back on speculation that central banks were nearing an end to their tightening cycles.[0]<\/a><\/sup> The 10-year US Treasury yields have scaled up 3.51%, with the market pricing in a peak policy Fed rate around the central bank\u2019s target of 5.125% for this year.[0]<\/a><\/sup> Treasury 10-year yields climbed to around 3.75%, with traders ramping up their bets on future tightening.[1]<\/a><\/sup> Bets on the maximum level of the European Central Bank’s rate increased to 3.50%, indicating that there might be an additional 50 basis points increase beyond what is already taken into account.[0]<\/a><\/sup> Officials including ECB Governing Council member Robert Holzmann have been busy walking back initial dovish messaging. The increase in yields had a negative effect on the technology sector, with the Nasdaq 100 not performing as well as other indices.[2]<\/a><\/sup> With the market pricing in a peak policy Fed rate around the central bank\u2019s target of 5.125% for this year, further weakness in front-end Treasury yields likely finds buyers.[0]<\/a><\/sup> It is now looking much less likely that the Fed will cut rates this year, however traders are still pricing over 30 basis points of rate cuts by year-end.[0]<\/a><\/sup><\/p>\n

0. <\/span>“Bonds Tumble as Central Bankers Hammer Home Hawkish Message” Yahoo! Voices, 6 Feb. 2023, https:\/\/www.yahoo.com\/now\/bonds-tumble-central-bankers-hammer-220934200.html<\/a><\/a><\/p>\n

1. <\/span>“EUR\/USD retreats from 1.0800 as Fed pause bets fade post mammoth US NFP report” FXStreet, 5 Feb. 2023, https:\/\/www.fxstreet.com\/news\/eur-usd-retreats-from-10800-as-fed-pause-bets-fade-post-mammoth-us-nfp-report-202302052210<\/a><\/a><\/p>\n

2. <\/span>“Wall Street Sees Worst Week of 2023 on Fed Jitters: Markets Wrap” Yahoo! Voices, 10 Feb. 2023, https:\/\/www.yahoo.com\/now\/asia-stocks-face-pressure-rates-233833830.html<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Global bonds continued to tumble this week as a string of policymakers told investors to expect further rate hikes, pushing back on speculation that central banks were nearing an end to their tightening cycles.[0]<\/a><\/sup> The 10-year US Treasury yields have scaled up 3.51%, with the market pricing in a peak policy Fed rate around the central bank\u2019s target of 5.125% for this year.[0]<\/a><\/sup> Treasury 10-year yields climbed to around 3.75%, with traders ramping up their bets on future tightening.[1]<\/a><\/sup> Bets on the maximum level of the European Central Bank’s rate increased to 3.50%, indicating that there might be an additional 50 basis points increase beyond what is already taken into account.[0]<\/a><\/sup> Officials including ECB Governing Council member Robert Holzmann have been busy walking back initial dovish messaging. The increase in yields had a negative effect on the technology sector, with the Nasdaq 100 not performing as well as other indices.[2]<\/a><\/sup> With the market pricing in a peak policy Fed rate around the central bank\u2019s target of 5.125% for this year, further weakness in front-end Treasury yields likely finds buyers.[0]<\/a><\/sup> It is now looking much less likely that the Fed will cut rates this year, however traders are still pricing over 30 basis points of rate cuts by year-end.[0]<\/a><\/sup><\/p>\n

0. <\/span>“Bonds Tumble as Central Bankers Hammer Home Hawkish Message” Yahoo! Voices, 6 Feb. 2023, https:\/\/www.yahoo.com\/now\/bonds-tumble-central-bankers-hammer-220934200.html<\/a><\/a><\/p>\n

1. <\/span>“EUR\/USD retreats from 1.0800 as Fed pause bets fade post mammoth US NFP report” FXStreet, 5 Feb. 2023, https:\/\/www.fxstreet.com\/news\/eur-usd-retreats-from-10800-as-fed-pause-bets-fade-post-mammoth-us-nfp-report-202302052210<\/a><\/a><\/p>\n

2. <\/span>“Wall Street Sees Worst Week of 2023 on Fed Jitters: Markets Wrap” Yahoo! Voices, 10 Feb. 2023, https:\/\/www.yahoo.com\/now\/asia-stocks-face-pressure-rates-233833830.html<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":650,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/651"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=651"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/650"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}