The UK bond market was hit by violent volatility on the 12th. Longer-term British bonds started in negative territory and expanded the decline in the afternoon. Yields on 30-year bonds rose above 5% at one point. Traders sold their bond holdings after a Bank of England spokesman confirmed the end of the bond-buying program as … Read more
At a meeting held by the US Federal Open Market Committee (FOMC) on September 20-21, authorities raised policy rates to the economic rate in a short period of time, and to reduce inflation to target values. He showed a policy to maintain at that level. It was revealed in the issues published on the 12th. … Read more
Mohamed El-Erian, chief economic adviser to Allianz in Germany, said on Thursday that an aggressive Fed tightening would not only hurt the U.S. economy, but also affect other economies. Statement on Bloomberg Television. “We’re not hitting the brakes, we’re hitting the brakes,” he said of the rapid rate hikes to deal with inflation. This is … Read more
Foreign exchange traders seem to be beginning to conclude that even if the Japanese government and the Bank of Japan implement further interventions to buy the yen and sell the dollar, the effect of supporting the yen exchange rate will be less than before. The US dollar/yen exchange rate remained at the level of 145.90 … Read more
New York Fed President Williams said the policy rate will eventually need to rise to around 4.5%. He simply said the pace of the rally and peak in this tightening cycle would depend on economic conditions ahead. “The timing and how much we need to raise rates will depend on the data,” he said at … Read more
Bond traders are losing certainty. As Treasuries hit record lows and turmoil this year, traders had one bet they could count on. Short-term bond yields will surge above long-term bond yields on speculation that a series of rate hikes by the Fed will push the economy into a recession. Traders’ bets steadily paid off as … Read more
Billionaire Ray Dalio, founder of Bridgewater Associates, has changed his view on holding cash and said he no longer thinks “cash is garbage.” He also said that short-term interest rates are “almost reasonable at this point.” As John Maynard Keynes is credited with saying: “When the facts change, I change my mind. What do you … Read more
The September U.S. jobs report, due Wednesday, is expected to show the labor market is progressing at cruising speed. Job growth is expected to remain healthy, albeit at a slower pace, and the Fed is likely to continue to apply the brakes with monetary policy. The median forecast of economists surveyed by Bloomberg forecast that … Read more