As Treasury Yields Soar, Here Is What Wall Street Thinks Happens To Interest Rates Next
- As Treasury Yields Soar, Here Is What Wall Street Thinks Happens To Interest Rates Next
by Tyler Durden, https://www.zerohedge.com/
The relentless selling in rates has resumed after the Monday’s US holiday, with violent bear-flattening in UST curves (although off worst levels now), as our belief that an aggressive Fed tightening will coincide with lower long-term growth spreads across trading desks, and as the front-end succumbs to another blistering escalation of FOMC hiking expectations (which according to Nomura’s Charlie McElligott earlier priced a touch over four hikes in ’22, up from 3.5x’s just mid- / late- last week), while Brent Crude surges to fresh 8 year highs, and European Gas Prices again jump higher on Ukraine / Russia geopolitical stress (also crunching EM Bond funds, where Ukraine has been a popular “long”).
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And so with the yield juggernaut seemingly unstoppable, at least until the slowdown/recession narrative becomes dominant (and today’s dismal Empire Fed print is a big first step on the way there), and the 10Y rising just shy of 1.86%…
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