【英式英语】金融市场当日一览 4Aug2022

What you need to know• US government bonds under further pressure following strong economic data• Unusually large move higher in yields as traders reassess outlook for rate rises• Wall Street stocks boosted along with Europe’s, but Asia slips backShort-dated US government debt sustained a fresh bout of selling yesterday as traders pivoted back to expecting more aggressive Federal Reserve rate increases in the months ahead.Treasuries have sold off in price over the past two days after several Fed officials indicated that the central bank is prepared to continue acting assertively in its attempt to tame inflation.A strong survey on America’s vast services sector released yesterday helped bolster the view that the economy was still strong enough to withstand sharp rate rises.The yield on the two-year Treasury note, which is sensitive to monetary policy expectations, has jumped more than 20 basis points over the past two days to 3.13 per cent.The 10-year yield has risen about 16bp since the close of trade on Monday.Moves of this magnitude are unusual in the $23tn US government bond market and highlight the scale of the uncertainty over the direction of monetary policy.They also come during the summer holiday season, a time when thin trading volumes often exacerbate volatility.Yields had fallen sharply last week after the Fed raised rates by 0.75 percentage points for the second month in a row but hinted that the pace of increases could moderate.But San Francisco Fed president Mary Daly said in an interview on Tuesday that the central bank was “nowhere near” done with its fight to cool inflation, which continues to run at 40-year highs.In a separate interview, Chicago Fed president Charles Evans said a half a percentage point Fed rate rise in September was likely but a 0.75 percentage point rise “could also be OK”.A closely watched survey released on Wednesday from the Institute for Supply Management showed activity in the services sector grew at a faster pace in July than in June, better than expectations that pointed to a slowdown in the rate of expansion.Investors’ expectations for Fed rate rises have increased following the hawkish commentary from central bankers and the upbeat data.Wall Street’s benchmark S&P 500 index was 1.6 per cent higher by early afternoon in New York trading while the tech-heavy Nasdaq Composite had jumped 2.5 per cent.The Stoxx Europe 600 index advanced 0.5 per cent while the MSCI Asia-Pacific gauge slipped 0.3 per cent.

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