Bond yields globally recovered lost ground after US inflation data reinforced bets of a small interest rate increase by the Federal Reserve next week.
Bond yields globally recovered some lost ground after closely watched US inflation figures reinforced bets of a small interest rate increase by the Federal Reserve at its meeting next week.
Fed rate futures imply an 81 per cent chance of a 0.25 percentage point lift this month to a range of 4.75 per cent to 5 per cent, and a 19 per cent probability the policy rate will stay on hold. A week ago, the market was leaning to an increase of 0.5 percentage points.after accelerating 0.5 per cent in January, leaving the annual headline figure only slightly lower at 6 per cent. That is down from 6.4 per cent in the 12 months to the end of January.
Still, he is tipping an increase next week as the Fed aims to get inflation back to its target. “We are probably more skewed towards a 25 basis points hike,” said Mr Mead.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Investors hope SVB collapse prevents US Federal Reserve from raising interest rateHerald Sun Business commentator Terry McCrann says people see the Silicon Valley Bank collapse as a “good news story” with hopes it causes the “fed to back off on raising interest rates”. “Right now, investors are actually seeing it as a good news story,” Mr McCrann told Sky News host Andrew Bolt. “It could cause the fed to back off on raising interest rates and maybe even start to cut interest rates.”
Read more »
Will the Reserve Bank end interest rate hikes after the collapse of two US banks?If the RBA wanted an excuse to end interest rate hikes, the collapse of two US banks just gave it one.
Read more »
Black Monday in the bond market points to pain aheadOPINION: The biggest fall in short-term bond yields since the 1987 crash is sending investors and central bankers a clear message about what’s to come after the SVB collapse.
Read more »
Bond market abandons rate bets as global recession fears intensifyInvestors dumped oil producers and bank shares and fled to safe haven assets such as gold and bonds as the collapse of Silicon Valley Bank rocked global markets.
Read more »
Victoria to ask federal government to fund SEC as state sets ambitious target for first projectThe Albanese government will be asked to help fund Victoria’s resurrected SEC, while discussions with major industry super funds have begun.
Read more »
‘Statement of intent’: SA and federal govts sign cooperation agreement to deliver AUKUS subsDefence Minister Richard Marles says he and the South Australian Premier Peter Malinauskas have signed a cooperation agreement following the AUKUS announcement on Tuesday. The nuclear submarines Australia will receive under AUKUS will be based on a British design and are set to be built in Adelaide, with the first to be completed in just under two decades, around 2042. “The most important aspect of that is a headline commitment between our two governments to work cooperatively together to deliver this project,” Mr Marles said during a media conference on Wednesday. “It is a profoundly important statement of intent.” Mr Marles assured Australians that they can have the “highest degree of confidence” that the Albanese government and South Australian government are working closely together to deliver the AUKUS submarines for the nation.
Read more »