Bond Yields Surge To 6-Month Highs As Likelihood Of No-Landing Scenario Increases: UBS Warns Of Potential Fed Rate Hikes To 6.5%
==========
U.S. Treasury yields have reached their highest levels since mid-November 2023, hitting 4.61% on the 10-year Treasury note. This increase is driven by economic resilience, fiscal spending, and inflationary pressures. Bond ETFs, such as iShares 7-10 Year Treasury Bond ETF and iShares 20+ Year Treasury Bond ETF, have experienced significant declines. Recent economic indicators, including higher-than-expected retail sales and inflation figures, have shifted market expectations of Federal Reserve rate cuts. Analysts, including UBS Group AG strategists, warn of a potential return to rate hikes if inflation remains above 2.5%, with the Federal Funds rate potentially reaching 6.5% by mid-next year. They caution that this could lead to a significant flattening of the U.S. Treasury curve, a decline in stock market values, wider credit spreads, and an adjustment in market multiples.
#BondYields #FederalReserve #RateHikes #UsTreasury #Inflation #EconomicIndicators #Etfs
https://markets.businessinsider.com/news/etf/bond-yields-surge-to-6-month-highs-as-likelihood-of-no-landing-scenario-increases-ubs-warns-of-potential-fed-rate-hikes-to-6-5-1033250896
Markets Insider /
npub1sm4…d5sv
2024-04-16 00:39:59
Author Public Key
npub1sm4vnv0vjzhsm765643gdstj23qkc6jgu7vvax8fepa0z4skqjaqsfd5svSeen on
wss://nos.lolPublished at
2024-04-16 00:39:59Event JSON
{
"id": "8b417d8af530fe5461d3a67b0b018287b61a4cd418a6b42d202865c7598e64c9",
"pubkey": "86eac9b1ec90af0dfb54d56286c17254416c6a48e798ce98e9c87af1561604ba",
"created_at": 1713220799,
"kind": 1,
"tags": [],
"content": "Bond Yields Surge To 6-Month Highs As Likelihood Of No-Landing Scenario Increases: UBS Warns Of Potential Fed Rate Hikes To 6.5%\n==========\n\nU.S. Treasury yields have reached their highest levels since mid-November 2023, hitting 4.61% on the 10-year Treasury note. This increase is driven by economic resilience, fiscal spending, and inflationary pressures. Bond ETFs, such as iShares 7-10 Year Treasury Bond ETF and iShares 20+ Year Treasury Bond ETF, have experienced significant declines. Recent economic indicators, including higher-than-expected retail sales and inflation figures, have shifted market expectations of Federal Reserve rate cuts. Analysts, including UBS Group AG strategists, warn of a potential return to rate hikes if inflation remains above 2.5%, with the Federal Funds rate potentially reaching 6.5% by mid-next year. They caution that this could lead to a significant flattening of the U.S. Treasury curve, a decline in stock market values, wider credit spreads, and an adjustment in market multiples.\n\n#BondYields #FederalReserve #RateHikes #UsTreasury #Inflation #EconomicIndicators #Etfs\n\nhttps://markets.businessinsider.com/news/etf/bond-yields-surge-to-6-month-highs-as-likelihood-of-no-landing-scenario-increases-ubs-warns-of-potential-fed-rate-hikes-to-6-5-1033250896",
"sig": "6dc5a67a960dac17f77914a9030681c99f3df986a4a0bda954a8f5f03c8f5f35e4b5061285e9b5af4cc0aa7cc51cacdd6fd6f95ef214ea90527930e105c4b023"
}