Fed Struck by Boomerang Effect as Rate Move Boosts Long Bonds
- Higher interest rates boost dollar, denting commodities prices
- Lower raw materials costs dim inflation, boosting fixed income
The Marriner S. Eccles Federal Reserve building stands in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The Federal Reserve has ignited a chain reaction in markets and government bonds are the beneficiaries.
To understand how means following the links between financial assets -- from foreign exchange to commodities to fixed-income.