bond market – The News Desk

1Nov

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The Federal Reserve at War

Monetary policy officials are hinting to financial markets that the Federal Reserve will stop raising interest rates—even as the Fed signals that it is too early to declare victory over inflation. Wary investors can only speculate, while market analysts are happy to guess the Fed’s next move.Before the Fed announces its latest interest-rate decision on Wednesday, we should recognize that dramatic shifts in monetary policy that affect financial outcomes far into the future aren’t predictable. They occur when unexpected financial events force unanticipated actions.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

The Bond Market's Message

The yield that matters is on 10-year Treasurys, which is up 1.5 percentage points so far this year.

Bond market sees no end to tumult as Federal Reserve casts a hawkish shadow

By Liz Capo McCormick, Michael Mackenzie and Ye Xie Across Wall Street, there’s growing relief that the Federal Reserve — at long last — may be done raising interest rates. But that doesn’t mean turbulence in the bond market will soon become a thing of the past. Investors anticipate that US Treasuries will continue to be whipsawed by heightened volatility as economic uncertainty threatens to alter the central bank’s path or keep rates pinned higher for far longer than traders currently expect. Already, some Fed officials are underscoring that there may still be more work to do as inflation continues to hold above their 2% target despite the most aggressive monetary policy tightening in four decades. At Barclays, strategists have advised clients to sell two-year Treas...