HomeFinancial MarketsGlobal Bonds Fall Ahead of Fed Chair Testimony

Global Bonds Fall Ahead of Fed Chair Testimony

Treasury yields worldwide fell on Tuesday, with markets expressing concerns that stubborn inflation could result in continued aggressive money-tightening policies from central banks across the globe.

UK 10-year yields rose eight points to their highest level since last September, while U.S. 10-year yields gained three basis points. UK investors are awaiting the release of the nation’s latest inflation data on Wednesday, with U.S. observers anticipating Federal Reserve Chairman Jerome Powell’s testimony before Congress that same day.

“There is no question the momentum has shifted, with US yields climbing even after the Fed paused and University of Michigan inflation expectations dropped,” Prashant Newnaha, a rates strategist at TD Securities Inc. in Singapore remarked. “The prospect that the BOE and ECB will need to do more to get on top of inflation puts pressure on bonds globally.”

Asian treasuries also declined, as did Australian bonds following the Australian central bank’s meeting and its surprise rate hike. The country’s 10-year yield rose by two basis points to 3.99%; having previously hit a year-to-date high of 4.05%.

Broadcom’s Earnings Report Beats Expectations, Company Announces 10-for-1 Stock Split

Semiconductor maker Broadcom shared an earnings report for the second quarter that beat the estimations of analysts and caused its stock to surge more...

Federal Reserve Project One Rate Cut in 2024

During a meeting on Wednesday, the Federal Reserve kept its benchmark interest rate unchanged. Additionally, the U.S. central bank projected just one interest rate...

EV Maker Fisker Recalls 18,000 Cars Due to Software Issues, Compliance Reasons

Electric vehicle maker Fisker announced on Wednesday that it’s recalling more than 18,000 cars in North America and Europe. The recall affects Fisker’s Ocean...