- After a surprising increase in US inflation, which prompted hawkish comments from a federal reserve official, Treasuries extended their selloff and stocks were under pressure.
- In New Zealand and Australia, where the three-year yield hit its highest level since 2019, foreign notes fell. The two-year treasury yield in the US increased by the most in a single day since 2009. Treasury futures rose, despite the fact that there was no cash trade in Japan due to a holiday.
- Equity futures in the US and Europe, as well as Asian equities, have declined. The tech-heavy Nasdaq 100 led overnight losses as US stocks ended a two-day winning streak.
- The combination of strong treasury losses and a flattened yield curve shows that investors expect slower growth with aggressive Fed price-control measures. the dollar climbed.
- Inflation in the US has reached 7.5%, with goods prices skyrocketing and service expenses beginning to rise as well. The Fed should raise rates by 100 bps over the next three meetings, according to Fed's Bullard. He suggested such a shift could be considered in the interim between policy assessments.
