(Bloomberg) — Central bankers continued their forceful push-back against market bets for interest rate cuts, deepening a global selloff across stocks and bonds.
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European Central Bank President Christine Lagarde said on Wednesday that aggressive bets on interest-rate cuts aren’t helping policymakers in the battle to subdue inflation. That followed comments on Tuesday from Federal Reserve Governor Christopher Waller, who urged caution on the pace of rate cuts.
Swaps market pricing for a Fed rate cut in March has dropped to around 65% from 80% on Friday, while money markets pushed back bets on the timing of the ECB’s first quarter-point cut to June, from April. German two-year yields — among the most sensitive to changes in monetary policy — rose six basis points to 2.66%.
The Stoxx Europe 600 index slumped more than 1% at the open, with all industry sectors in the red. The Treasury two-year yield climbed five basis points to 4.28% and the dollar extended…
2024-01-17 03:13:23
Article from finance.yahoo.com
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(Bloomberg) — Central bankers are continuing to strongly oppose market expectations for interest rate cuts, leading to a global decline in stocks and bonds.
Most Read from Bloomberg
European Central Bank President Christine Lagarde stated on Wednesday that aggressive bets on interest rate cuts are not helping policymakers in their efforts to control inflation. This follows comments on Tuesday from Federal Reserve Governor Christopher Waller, who advised caution regarding the pace of rate cuts.
Market pricing for a Fed rate cut in March has dropped to around 65% from 80% on Friday, while money markets have delayed bets on the timing of the ECB’s first quarter-point cut to June, instead of April. German two-year yields, which are highly sensitive to changes in monetary policy, rose six basis points to 2.66%.
The Stoxx Europe 600 index fell more than 1% at the start, with all industry sectors in the negative. The Treasury two-year yield increased by five basis points to 4.28% and the dollar continued to…
2024-01-17 03:13:23
Article from finance.yahoo.com
rnrn