Market Briefing: US Yields Keep Climbing, Tightening Vise on Markets
As hopes for a policy “pivot” fade, US Treasury yields are continuing their inexorable ascent this morning. Equity markets look set to extend yesterday’s losses, commodities are coming under renewed pressure, and currency traders are buying the dollar once again. Terminal rate expectations are still rising. In a speech yesterday, the Philadelphia Fed’s Patrick Harker said “Given our frankly disappointing lack of progress on curtailing inflation, I expect we will be well above 4 percent by the end of the year,” and warned tightening would likely continue into 2023, saying “Sometime next year, we are going to stop hiking rates”....