With perfect structural reaction to current market technologies and the illiquidity of international DMMS, we may be in for a long break. Some financial markets are relieved, as they had expected a headline rate closer to 7%. The government's consumer price index showed 6.8% annual inflation in November, down from 7.8% in October. It was still above the 7% level that some had predicted as problematic, raising the likelihood of a peak in inflation. Tim Holland, CIO of Orion Advisor Solutions, says Wall Street was expecting more. The core CPI "meets expectations." "Many people believe we are nearing, if not already at, peak inflation," Holland says. Assuming this is true, we could see future deflation while yields remain stable. Bonds are the most vulnerable asset class to rising inflation. A rise in inflation leads to a sale of Treasury bonds, raising rates. Rather, investors waited for the Federal Reserve's policy announcement on Wednesday, which drove prices up and yields down. On Friday, yields fell across the curve except for one- and two-month bills. The 10-year Treasury yield (USD10Y) has fallen to around1.45%, while the 30-year Treasury yield (USD30Y) has fallen to around 1.84 percent. Initially, all three major US market benchmark indices reversed early-year gains. The market prefers monthly data over annual data, according to TD Securities' Gennadiy Goldberg. Goldberg attributes this to lower-than-expected monthly inflation and the Fed's three rate hikes in 2022. The long-run terminal rate is only 1.5 percent, according to the Fed's September projections. The market may discount a policy blunder. A year ago, the 2-year yield was near a year-high of 0.64 percent. Investors expected faster asset sales to help the Fed raise rates sooner next year and combat inflation.
The long-run terminal rate is only 1.5 percent, according to the Fed's September projections. The market may discount a policy blunder. A year ago, the 2-year yield was near a year-high of 0.64 percent. Investors expected faster asset sales to help the Fed raise rates sooner next year and combat inflation.
With perfect structural reaction to current market technologies and the illiquidity of international DMMS, we may be in for a long break.
Some financial markets are relieved, as they had expected a headline rate closer to 7%.The government's consumer price index showed 6.8% annual inflation in November, down from 7.8% in October.
It was still above the 7% level that some had predicted as problematic, raising the likelihood of a peak in inflation.
Tim Holland, CIO of Orion Advisor Solutions, says Wall Street was expecting more.
"Many people believe we are nearing, if not already at, peak inflation," Holland says.
Assuming this is true, we could see future deflation while yields remain stable
Bonds are the most vulnerable asset class to rising inflation.
A rise in inflation leads to the sale of Treasury bonds, raising rates.
Rather, investors waited for the Federal Reserve's policy announcement on Wednesday, which drove prices up and yields down. On Friday, yields fell across the curve, except for one-and two-month bills. The 10-year Treasury yield (USD10Y) is now around 1.45%, while the 30-year Treasury yield (USD30Y) is around 1.84 percent. Initially, all three major US market benchmark indices reversed early-year gains. The market prefers monthly data over annual data, according to TD Securities' Gennadiy Goldberg. Goldberg attributes this to lower-than-expected monthly inflation and the Fed's three rate hikes in 2022. According to the Fed's September projections, the long-run terminal rate is only 1.5 percent. The market may discount a policy blunder. The 2-year yield was near a year-high of 0.64 percent a year ago. Investors expected faster asset sales to help the Fed raise rates sooner next year and combat inflation.
The long-run terminal rate is only 1.5 percent, according to the Fed's September projections. The market may discount a policy blunder. A year ago, the 2-year yield was near a year-high of 0.64 percent. Investors expected faster asset sales to help the Fed raise rates sooner next year and combat inflation.
With perfect structural reaction to current market technologies and the illiquidity of international DMMS, we may be in for a long break.
Some financial markets are relieved, as they had expected a headline rate closer to 7%.The government's consumer price index showed 6.8% annual inflation in November, down from 7.8% in October.
It was still above the 7% level that some had predicted as problematic, raising the likelihood of a peak in inflation.
Tim Holland, CIO of Orion Advisor Solutions, says Wall Street was expecting more.
"Many people believe we are nearing, if not already at, peak inflation," Holland says.
Assuming this is true, we could see future deflation while yields remain stable
Bonds are the most vulnerable asset class to rising inflation.
A rise in inflation leads to the sale of Treasury bonds, raising rates.
Rather, investors waited for the Federal Reserve's policy announcement on Wednesday, which drove prices up and yields down. On Friday, yields fell across the curve, except for one-and two-month bills. The 10-year Treasury yield (USD10Y) is now around 1.45%, while the 30-year Treasury yield (USD30Y) is around 1.84 percent. Initially, all three major US market benchmark indices reversed early-year gains. The market prefers monthly data over annual data, according to TD Securities' Gennadiy Goldberg. Goldberg attributes this to lower-than-expected monthly inflation and the Fed's three rate hikes in 2022. According to the Fed's September projections, the long-run terminal rate is only 1.5 percent. The market may discount a policy blunder. The 2-year yield was near a year-high of 0.64 percent a year ago. Investors expected faster asset sales to help the Fed raise rates sooner next year and combat inflation.
