UK central bank intervenes in market to halt economic crisis

LONDON (AP) — The Bank of England took emergency action Wednesday to stabilize UK financial markets and head off a crisis in the broader economy after the government spooked investors with a program of unfunded tax cuts, sending the pound tumbling and the cost of government debt soaring The central bank warned that crumbling confidence … Read more

Fed rate hikes have made some corporate bonds very attractive. How to profit from it

As stocks sink and interest rates rise, investors are getting more excited about corporate bonds than they’ve been in a generation. One side effect of Federal Reserve tightening policy is it has made interest rates go up everywhere — including in the corporate bond market. But as pros point out, investors need to be careful … Read more

Government bond yields soar as markets weigh threat of a recession

Hoxton/Sam Edwards | Getty Images Bond yields jumped this week after another major rate hike from the Federal Reserve, flashing a warning for market distress. The policy-sensitive 2-year Treasury yield on Friday climbed to 4.266%, notching a 15-year high, and the benchmark 10-year Treasury reached 3.829%, the highest in 11 years. Soaring yields come as … Read more

From the Fed to Europe’s currency crisis, here’s what’s behind this selloff in financial markets

Trader on the floor of the NYSE, June 7, 2022. Source: NYSE Stocks fell sharply, bond yields rose and the dollar strengthened Friday as investors heeded the Federal Reserve’s signal that its battle with inflation could result in much higher interest rates and a recession. The sell-off Friday was global, in a week where the … Read more

As Treasury yields rise, here’s how to allocate your portfolio, pros say

The latest threat to stocks now isn’t any macro risk — it’s rising 2-year Treasury yields, according to some fund managers and strategists. Short-term, relatively risk-free Treasury bonds and funds are back in the spotlight as the yield on the 2-year Treasury continues to surge. On Wednesday, it reached 4.1% —the highest level since 2007 … Read more

What the inverted yield curve means for your portfolio

Morsa Images | E+ | Getty Images As investors digest another 0.75 percentage point interest rate hike by the Federal Reserve, government bonds may be signaling distress in the markets. Ahead of news from the Fed, the policy-sensitive 2-year Treasury yield climbed to 4.006% on Wednesday, the highest level since October 2007, and the benchmark … Read more

Want a risk-free 4% return? How investors can buy a simple treasury

The spike in short-term Treasury yields may have some investors thinking about adding the notes to their portfolio. The yield on the 2-year Treasury went over 3.9% on Friday, the highest level since 2007. Bond yields move inversely to their prices. The 2-year note is at the point on the Treasury yield curve that is … Read more

A punishing selloff in short-term debt is pushing one rate near the ‘magic’ level that ‘frightens’ markets

The yield on the 1-year Treasury note is testing 4%, a level that traders say could spill over into other rates and send shivers through financial markets, as the Federal Reserve presses forward in earnest with its campaign to shrink its $8.8 trillion balance sheet . That balance-sheet process, known as “quantitative tightening,” is intended … Read more

Hong Kong’s Hang Seng rises 2%, leads Asia markets higher after Powell’s inflation comments

HSBC says China’s latest inflation readings allow PBOC to maintain accommodative monetary policy China’s latest inflation figures give the People’s Bank of China room to maintain its current monetary stance, HSBC said in a note. “The moderation in price pressures gives the PBOC room to stay accommodative,” greater China economist Erin Xin said. Xin added … Read more

Japan’s Nikkei rises 2% in mixed Asia session following Wall Street’s rebound rally

Australia’s central bank sees case for slower rate hikes Reserve Bank of Australia Governor Philip Lowe said the central bank “recognizes” that “the case for a slower pace of increase in interest rates becomes stronger as the level of the cash rate rises.” National Australia Bank economist Tapas Stickland said Lowe’s remarks may be “signaling … Read more