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US long-term yields soar as major banking meetings approach

US short-term government yields rose on Wednesday to the highest level since March 2020, while other signs of strong inflation have forced investors to bet on rising global prices.

Recent sales in the short-term market segment of the bond market, which is strongly influenced by the expectations of monetary policy, came later. data displayed Inflation in Australia rose to 2.1 percent in the quarter from July to September, pushing the central bank for the first time since 2015.

Markets are betting that the Reserve Bank of Australia will raise prices from what is currently happening next summer, although the central bank has repeatedly insisted that interest rates will not need to rise until 2024. Three-year yields rose to 0.95 Wednesday, up 0.76 percent from the previous day.

“As the harvest continues to rise, [the RBA] they may be forced to take action, “says Commerzbank analyst Antje Praefcke.

The sale has entered the U.S. government, a major global brand, continuing with recent developments driven by expectations that financial policy makers will be forced to raise prices in response to rising inflation. Long-term loans have been protected from worse trading, with some investors betting that tightening monetary policy would reduce economic growth in the coming years.

Two-year Treasury note yields were low on 0.5 percent Wednesday, as inflation pressure increases warm expectations for next week’s Federal Reserve meeting. The central bank has already announced that it will begin spending $ 120bn-a month on a fiscal program.

The European Central Bank will meet on Thursday this week, with the RBA interest rate next Tuesday, the Fed next Wednesday and the Bank of England the next day.

“So far, we have seen the same thing in various crops,” said Cosimo Marasciulo, Amundi’s chief financial officer. “But it could be that different central banks have different approaches”, which “could lead to a smaller monetary policy towards 2022”.

In the stock market, European stocks slowed sharply in morning trading as investors considered the amount of money offered across the Atlantic, with hundreds more expected over the next two weeks. The Stoxx 600 fell 0.3 percent while the London FTSE 100 dropped 0.2 percent, the UK Budget announcement at lunchtime as Chancellor Rishi Sunak outlined the government’s performance and plans for the future.

The move followed a decline in Asian shares, while Hong Kong’s Hong Kong index closed 1.6%.

The US blue-chip S&P 500 index it hit another record Tuesday, closing about 0.2 percent. S&P has risen 22 percent since the beginning of January – backed Tuesday with strong results from UPS and General Electric. After closing the bell, numbers from Google Parent Alphabet and its technical partner Microsoft raised the expectations of experts.

Future markets Wednesday showed that S&P will open 0.1 percent higher, while the technical Nasdaq 100 will also rise 0.1 percent.

What you can see in the markets today

UK: Chancellor Rishi Sunak unveils his annual Budget speeches and budget review. Authorities have already confirmed a rise in global wages and Sunak is expected to announce the end of a “pay pause”. The UK Budget Office will also publish its views on finance and finance and the Bank of England will release its funding figures.


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