) The rally came as technology bellwethers Meta Platforms Inc. and Spotify Technology SA forecast slowing growth, adding to concerns that monetary policy tightening will hurt the global economy.“The main news this morning is Meta’s numbers falling short of estimates,” said Andrew Ticehurst, rates strategist at Nomura Holdings Inc. “This has given us a bit of risk off, with E-mini around 1% lower, the Aussie and kiwi a little softer and bond yields down a few basis points,” he said, referring to S&P 500 futures.Benchmark 10-year yields in Australia and New Zealand fell at least four basis points. Treasuries rallied across the curve, with the 10-year yield down one basis point to 1.76%. Japan’s benchmark held steady at 0.175% after touching a six-year high of 0.185% this week.
What’s interesting is that late Wednesday evening the futures markets are looking glum, with the NASDAQ off 2.25%. Asian markets lower as well. Hoping not a bad sign for Thursday. I also think the movement in bonds is interesting - especially if it carries over to the U.S. markets Thursday.. FWIW - I can’t see how the issues re the Ukraine can be helping matters any.
Bloomberg is quoting 1.76% on the 10 year late Wednesday. That’s very close to the 1.74% it reached last March, So the Fed can “huff and puff” all they want. Yes, they can push short term rates a lot higher. But if longer term rates (market driven) don’t cooperate they face a real dilemma ISTM. https://finance.yahoo.com/news/global-bonds-rally-meta-growth-014605670.html
(Had better luck with this link not running my ad blocker. Not a lot of news at late night hour, so took what could find.)