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Whiplashed Treasury Holders Eye Long Bonds for Next Fed Signals

  • Yield curve flattens as short-rates jump on expected Fed hikes
  • Fed could use balance sheet to drive up longer yields
2022 Rate Hike In Play As Job Market Heals
Photographer: Stefani Reynolds/Bloomberg

Strong market shocks are usually followed by tremors -- and the ones that rattled the Treasury market over the past week will likely be no exception. 

Bond investors were hammered Thursday when inflation accelerated more than expected to another four-decade high, leaving Wall Street traders swiftly ratcheting up bets the Federal Reserve will begin an aggressive series of interest-rate hikes starting next month.