Investors bracing for another jumbo Federal Reserve rate hike are focused on a few key trades: betting on deeper inversion in the US yield curve, further losses in stocks and a stronger dollar
These are some of the investor expectations now that bond markets have taken another step toward pre-pandemic normality, with benchmark inflation-adjusted Treasury yields climbing above zero.
The current yield inversion has more to do with the temporary demand-supply mismatch in the bond market and doesn't necessarily signal a recession in the US
Shorter maturities have been selling off faster than their longer-dated peers this year as investors ratchet up expectations the Fed will hike rates to combat inflation
The shape of the yield curve is a key metric investors watch as it impacts other asset prices, feeds through to banks' returns and has been an indicator of the economy.
MSCI's broadest index of Asia-Pacific shares outside Japan added 1.5% to its highest in two weeks, helped by a 3.8% gain in Hong Kong-listed tech stocks
(Reuters) - Gold prices eased on Tuesday, pressured by higher U.S. Treasury yields, as investors looked for clues about the Federal Reserve's interest rate hike timeline from its policy meeting next week.