- Bonds continued to lose ground on Wednesday as the Federal Reserve reaffirmed its commitment to containing inflation, while equities markets rose as investors increased their quest for hedges.
- Japan led a MSCI index of Asia Pacific shares higher for the second day. After the S&P 500 rose for the fifth time in six sessions, US contracts fluctuated. The index has already regained half of its losses since the beginning of the year. Treasuries added to losses prompted on Monday by Fed's Powell comments that a half-point rate hike at the central bank's next meeting is conceivable.
- Short-term US government bonds fell to their lowest quarterly performance in over four decades, with rates rising to levels not seen since mid-2019. The debt of Australia and New Zealand has weakened. The dollar rose slightly, while the yen fell to a six-year low.
- China's stocks fell as the country announced yet another lockdown to combat the escalating number of cases of Covid-19. Meanwhile, China Evergrande Group informed investors that a preliminary restructuring proposal would be presented to creditors by the end of July.
