- In response to fears about continuously high inflation and indications that company profitability might be below expectations, equities declined under pressure from rising government yields. This month, a measure of the dollar increased to its highest level.
- The futures on the S&P 500 and NASDAQ 100 both declined by roughly the same amount as the Stoxx Europe 600 index, indicating that wall street will likely see another risk-off day. Meta Platforms declined among other well-known tech companies in US premarket trading due to rising interest rates.
- The tone is shaky ahead of Thursday's US inflation data, and if the figure is higher than expected, there may be solid justification for another 75 basis-point rate hike. Despite the potential harm to economic development, Fed officials have so far given little indication that they are willing to halt the cycle of rate increases.
- The 30-year yield increased to its highest level since 2014, while two-year treasury yields reached their highest level since 2007.
- As the bank of England was obliged to increase its emergency steps to address what it called "fire-sale dynamics," the upheaval in the UK bond markets subsided on Tuesday. Ten-year UK government rates, which had increased by more than 50 basis points since October 4th, fell by six basis points to approximately 4.4%.
