(Bloomberg) — The world’s biggest bond market extended this month’s selloff after solid economic readings and hawkish Fedspeak reinforced speculation that interest rates will remain higher for longer.
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Treasuries fell across the US curve — with two-year yields once again near the 5% mark. The S&P 500 dropped for a fifth straight session — its longest losing run since October. The dollar rose. An initial quarter-point Federal Reserve rate cut remained priced in for November.
When asked about the possibility of hiking, Fed Bank of New York President John Williams said that while it is “not” his baseline expectation, it’s possible — if warranted. His Atlanta counterpart Raphael Bostic noted he doesn’t think it will be appropriate to ease until toward the end of 2024. The Fed could “potentially” hold rates steady all year, Minneapolis Fed chief Neel Kashkari told Fox News…
