- Investors braced for the biggest federal reserve interest rate hike since 2000 on Wednesday, while bonds were under pressure, as they anticipated additional hints on how ruthlessly the Fed will combat inflation.
- After a second straight daily increase in US stocks on a turbulent Tuesday, the S&P 500 and Nasdaq 100 contracts moved higher. Stocks in Asia were mixed as a result of a drop in Chinese technology enterprises in Hong Kong. Japan and China are both closed for business.
- A global wave of monetary tightening withered bonds. The 3-yr yield in Australia increased by 11 bps to 3.1%. That came after a volatile Wall Street afternoon for treasuries, with the 10-yr yield hovering around 3%. treasury futures fell. Due to the Japanese holiday, there is no cash trading.
- The dollar index remained near 2-yr highs. The strength of the dollar reflects apprehension about a variety of concerns, including tighter financial conditions, China's Covid lockdowns, and Russia's conflict in Ukraine.
