Treasury sales resumed Tuesday as investors raised their bets on inflation from the Federal Reserve, with markets for the first time raising interest rates from the US central bank this year.
Treasury yields jumped for up to two years when traders returned from a weekend in the US, dragging down trading markets.
Yields over the 10-year US Treasury note, which rises as the price of international debt declines, rose by 0.08 percent to 1.85 percent because inflation expectations and inflation have kept interest rates stable. unpleasant.
Meanwhile, yields on the two-year Treasury note, which controls interest rates, rose by 0.06% to 1.03% – a level that has not been seen since February 2020.
“There are speculations about the amount of violence from the Fed,” said James Athey, a history manager at Aberdeen Standard Investments.
This idea, he said, was “initiated” by JPMorgan Chase boss Jamie Dimon “randomly stated last week that [policymakers] can climb seven or seven times this year, and the migration has grown significantly ”.
The US Central Bank has closed its interest rate close to zero since March 2020, but futures contracts indicate that investors expect it to exceed 1 percent by December.
Bank of Japan on Tuesday raised its stance on inflation, adding to boosting inflation. In a number of major banks around the world, the BoJ said the predicted risks were “fixed” and not “twisted”, a term that has been in use since 2014.
Linguistic change “makes markets think of a country where the BoJ will take away funding,” says Padhraic Garvey, an ING expert.
Wall Street’s Nasdaq Composite share gauge, which includes technical groups and other key companies, fell by 1.5%. The overall S&P 500 index fell 1.4%.
As well as the prospect of rising interest rates, which could dramatically affect inflation while mortgage lending is expected to rise sharply, investors are struggling with lower corporate interest rates following the 2020 rebate.
Analysts surveyed by FactSet data providers expect that companies listed on the S&P 500 reported a 22 percent gain in the last quarter of December, year-on-year, compared to 40 percent in the last three months.
Shares in Goldman Sachs fell 8 percent on Tuesday, their biggest fall daily since June 2020, after the stock market gained a quarter. preders of undershot analysts.
Stock markets first he left after data last week showed that US inflation hit an annual rate of 7 percent in December, but it was also a monthly improvement.
But new fears have been rising for long-term prices over cyberbullying after Chinese officials, a major retailer, heard of the spread of Omicron coronavirus and new constraints and tour guides.
“This is now causing concern for the downturn,” said Randeep Somel, M&G’s history manager.
In Europe, the share of Stoxx 600 is down 0.9 percent while its share is down 1.8%.
The German 10-year-old Bund stock, which reflects the lending rate of European businesses and real estate, was sold at 0.01% on Tuesday as it neared its approach. rising above zero for the first time since 2019.
Russia’s biggest sales lost 6.5 percent on Tuesday, putting Moex on its worst day since early 2020. FTSE’s list of upcoming markets fell by 1 percent.
In Asia, Hong Kong’s Hang Seng share index fell 0.4% and the Nikkei in Tokyo closed 0.3%.
Brent crude, oil benchmark, rose 1.1% to $ 87.45 a barrel – reaching the highest level since 2014.
The dollar index, which measures US currency against six others, has risen 0.4 percent.