Global Yields Climb as Traders Lean Toward Fed Hike by July
- Swaps show bets on quarter-point hike through end of the year
- Key segment of yield curve inverts to level last seen in March
The Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Graeme Sloan/BloombergThis article is for subscribers only.
Amid a slide in global bonds, the Treasury market briefly restored the full pricing of Federal Reserve tightening by July, which traders expect to be the last interest-rate hike in 2023.
The latest shift in expectations for Fed policy came amid a surge in Treasury yields across the curve. Selling picked up after the Bank of Canada cited stubborn inflation pressures for delivering a quarter-point hike Wednesday and extended into Asia markets Thursday, where short-dated Australian yields hit their highest in more than a decade.