Bond Selloff Cuts Rate-Hike Expectations as Long-Term Yields Rise

Global bond selling is tightening financial conditions for U.S. households and businesses, potentially reducing the need for additional central-bank rate increases even as inflation risks remain. Interest-rate swaps across eight major economies imply about 539 basis points of cumulative rate-hike expectations, down from a September peak of 717 basis points. The 178-basis-point decline shows investors are assessing whether higher bond yields can deliver enough tightening to reduce the need for further policy action. Long-term yields have risen for reasons beyond expectations for central-bank policy. The 10-year U.S.

Source: TokenPost