Skip to content
Sign In Subscribe
Reuters — Economy — Interest Rates — Macro Matters — Monetary Policy — Investment

Analysis: As banks break, markets hear the sound of peaking rates

Investors pulled down global rate expectations on Mon following US bank failure. 2-yr yields down nearly 20bps, Goldman Sachs no longer forecasts hike next week.

1 min read
  • Investors pulled down global rate expectations on Mon after US admin took emergency steps to shore up banking confidence.
  • US int rate futures surged, 2-yr Treasuries on course for biggest 3-day gain since Black Monday in 1987.
  • Higher borrowing costs & pressure in real econ make further hikes difficult, Goldman Sachs no longer forecasts Fed to hike rates next week.
  • 2-yr yields down nearly 20bps, below bottom end of Fed funds rate window at 4.5%, market peak near.
  • New Fed bank funding scheme aimed at addressing SVB's problems with losses in bond portfolio.
Analysis: As banks break, markets hear the sound of peaking rates
Investors scrambled to pull down global rate expectations on Monday and abandoned wagers on steep U.S. hikes next week, reckoning the biggest American bank failure since the financial crisis will make policymakers think twice.
Reuters

More in Interest Rates

More in Economy

More from Reuters

Latest