Lates News

Global bond yields fell back on Thursday, calming a pressured market. That followed a Federal Reserve rate hike, Warsh's vow to curb inflation, and traders waiting for the Bank of Japan's decision on Friday. The 10-year U.S. Treasury yield dropped 3 basis points to 4.99%, ending an eight-day streak of gains. Australian and Japanese government bond yields of the same maturity fell 3 basis points and less than 1 basis point, respectively. Byron Anderson, head of fixed income at Laffer Tengler Investments, said the Fed had no choice but to raise rates, otherwise the bond market could face a larger selloff; the market narrative is now on a collision course with the Fed, meaning more volatility, and a single rate cut cannot soothe the bond market for long or solve inflation. Hebe Chen, market analyst at Vantage Global Prime, said that for the bond market, this is more likely to leave a long-term shadow than a brief storm; front-end yields must price in the possibility of further Fed tightening, while the long end is already grappling with inflation, heavy issuance and fiscal concerns, and even if the initial volatility subsides, the gravitational pull of higher yields may persist.