Warsh Sparks July Rate-Hike Bets as 2-Year Treasury Yields Jump Most in Over 1 Year
Updated
Updated · Bloomberg · Jun 17
Warsh Sparks July Rate-Hike Bets as 2-Year Treasury Yields Jump Most in Over 1 Year
3 articles · Updated · Bloomberg · Jun 17
Summary
Futures traders moved to price in a possible rate increase as soon as next month after Kevin Warsh’s debut press conference as Federal Reserve chair.
Warsh’s blunt message that the Fed would not tolerate high inflation triggered a selloff in short-term Treasuries, sending some yields up by the most in more than a year.
That repricing intensified a hawkish shift already underway Wednesday, when markets had moved from expecting an October hike after the Fed signaled higher rates.
The latest bond-market jolt extends a broader cross-asset reaction to renewed inflation fears, which had already pushed stocks lower and lifted the dollar earlier in the day.