Market Retreat Continues as Yields Climb
Worries about a higher-for-longer stance from the Federal Reserve are intersecting with extraordinarily-elevated levels of government bond issuance to drive yields higher, bolstering the dollar’s safe-haven appeal. With ten-year yields climbing across the developed economies, but moving even faster in the United States, the greenback is trading near a two-week peak, and investors are rebalancing away from equities, commodities, and risk-sensitive currencies. After a series of stronger-than-expected data releases and hawkish comments from Fed officials, markets are struggling to choke down heavy volumes of bond supply. In comments yesterday, the Atlanta Fed’s relatively-centrist President Raphael Bostic said “My outlook is...