Skip to content

Global Bond Rout Extends as Three Half-Point Fed Hikes Priced In

  • Sell-off sends Australian 10-year yield to highest since 2014
  • Hawkish Fed comments spur resumption in yield-curve flattening
Video player cover image
Powell: Half-Point Fed Rate Hike on the Table for May
Updated on

Global bonds added to this year’s epic rout as traders brace for the most aggressive Federal Reserve interest-rate hikes in 40 years and the likelihood most global central banks will also tighten. 

The policy-sensitive two-year yield climbed as much as eight basis points on Friday to 2.76%, the highest since late 2018, after Fed Chair Jerome Powell said overnight “it is appropriate in my view to be moving a little more quickly.” Ten-year Treasury yields jumped to 2.95%.