Echoes of central banks continue in global markets

Echoes of central banks continue in global markets
Echoes of central banks continue in global markets

After many central banks, especially the US Federal Reserve, increased interest rates, global bond yields rose and reached the highest levels in recent years.

With the revelation that the Fed expects to continue its rate hikes next year, the US 10-year bond yield rose to an 11-year high of 3.71 percent, while the 2-year bond yield exceeded 4.1 percent, the highest in 15 years.

The difference between the 3-year Collateralized SOFR (Margined Overnight Financing Rate) swap rate and the same-term bond yields has fallen to the lowest level since October 2020, when this rate developed against Libor was first used.

The yield on 3-year Treasuries rose nearly 14 basis points to 4.13 percent, the highest level since 2007, while the SOFR rose by approximately 8 basis points to 4.01 percent.

This revealed that the incoming sale of US 3-year bonds was much more aggressive.

The rise in yields was reflected in the sale of stocks.

In the USA, the S&P 500 declined by 0.84 percent and the Nasdaq 100 by 1.17 percent; First trades on the last day of the week pointed to a decline in Wall Street futures.

The S&P 500 index closed at the lowest level since June on Thursday. Meanwhile, Goldman Sachs lowered its year-end forecast for the S&P 500 from 4,300 to 3,600, with the expectation that rate hikes will be faster than previously predicted.

The institution expects real interest rates to be 1.5 percent in December. Asian stock markets are also moving to the 6th week of continuous decline. Markets are on holiday in Japan.

Hong Kong and Chinese stock indices are negative. Bloomberg Dollar Index, which reached a record high yesterday, continues to rise compared to the closing level with 0.11 percent.

The article is in Turkish

Tags: Echoes central banks continue global markets

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