US Rates Have Biggest Two Days Since 1987, Jolting Global Assets
- Almost all major currencies weakened versus soaring greenback
- Money managers ramped up Fed interest-rate hiking wagers
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Treasury yields posted their biggest two-day jump in decades on Monday, roiling assets around the world in one of the strongest signs yet that the era of easy money is coming to an end.
Global markets blew through milestones that seemed far-fetched even a few days ago. Yields on three-year US Treasuries soared, capping the biggest two-day rise since 1987. The S&P 500 tumbled into a bear market, falling more than 20% from its record close in January. The spread between Italian and German benchmark yields -- a key gauge of risk in the euro-area -- grew to the widest since May 2020. And a gauge of the greenback rose to the highest since the onset of the coronavirus pandemic.