U.S. 2-year bond yields rose sharply once more in intraday trading on Monday (13th), soaring to the highest since 2007, while international oil prices also fell 2%, falling for the third consecutive session, as U.S. inflation accelerated, prompting investment The Federal Reserve (Fed) is expected to speed up the pace of rate hikes.
U.S. 2-year yields rose 11 basis points to 3.17 percent in intraday trading on Monday, the highest level since 2007.U.S. bond selling pressure also spreads to Asian markets, Japan 10-year Treasury yieldAt 0.25%, it is at the upper limit of the central bank’s tolerance.new zealand 10-year Treasury yieldIt also broke through the 4% barrier, the first time since 2014.
Crude oil in New York fell 2 percent to $118.28 a barrel on Monday.
The US consumer price index (CPI) accelerated to 8.6% in May, the highest since 1981, and the increase was larger than economists had expected.
“Inflation is as high as it is now, unemployment as low as it is now, and the economy is almost certainly in a recession within two years,” Summers said on CNN’s “State of the Union” on Sunday; Forecasts are often overly optimistic, and I hope they fully appreciate the seriousness of the problem.”
The Fed will announce its interest rate decision at 2 a.m. Taipei time on Thursday, and in addition to the latest rate, investors are also awaiting the latest forecasts from central bank officials on the economy, inflation and the federal funds rate.
Traders currently see a 50-50 chance of the Fed raising interest rates by 75 basis points (3 yards) in July, and Barclays has fired the first shot. The Fed is expected to raise its benchmark rate by 3 yards as soon as this week.
The outbreak in Beijing and Shanghai also worsened once more, dampening demand for crude oil. Xu Hejian, a spokesman for the Beijing Municipal Government, said on Sunday that the cluster case at the Paradise Supermarket in Chaoyang District, Beijing is fierce and the prevention and control is more difficult than the cluster case at the Xinfadi wholesale market and the previous wave of the epidemic, and there is still a risk of spillover. Therefore, on Monday, Chaoyang District will carry out nucleic acid screening for three consecutive days.