10- and 2-year Treasury yields fall as traders wait for PMI data

10-year and 2-year Treasury yields fell Monday as markets entered a new quarter and investors looked forward to the release of Purchasing Managers’ Index (PMI) data for the manufacturing sector. The 10-year Treasury benchmark fell 1 basis point to 3.7926% around 4:30 a.m. ET. The return on the policy-sensitive 2-year Treasury was 4.2022%, a decrease … Read more

El-Erian says Bank of England latest bailout shows we’re still in central bank ‘la-la land’

The turnaround of the Bank of England on Wednesday, where it announced it would start buying bonds to ease market stress, shows that central banks are in trouble today, and markets could have a rougher landing anyway, said Mohamed El-Erian on Wednesday. “The longer you stay in this la-la country of QE (quantitative easing), floored … Read more

Fed’s Evans nervous about going too far and too fast with rate hikes

Charles Evans, president of the Federal Reserve of Chicago, says he is concerned that the US central bank is raising interest rates too quickly in its efforts to tackle runaway inflation. Speaking to CNBC’s “Squawk Box Europe” on Tuesday, Evans said he remains “cautiously optimistic” that the US economy can avoid a recession – provided … Read more

El-Erian says the Fed made a ‘policy mistake of historic proportions’

Allianz economic adviser Mohamed El-Erian says investors are paying the price for the Federal Reserve’s policy mistakes. “This is a two-pronged policy mistake of historic proportions,” the former CEO of bond giant Pimco told CNBC’s “Squawk Box” in a Monday interview. “Part No. 1 was tempted by ‘transient’ and doing nothing,” he added, referring to … Read more

Russian stocks plunge to lows from February invasion

An activist takes part in an unauthorized protest on Arbat Street September 21, 2022 in Moscow, Russia. The board plays on the word Mobilization as ‘No Funeral’. Contributor | Getty Images News | Getty Images Russian supplies fell sharply on Monday, reaching their lowest point since February 24, the day the first Russian troops invaded … Read more

The ‘real cure’ for inflation has been ignored, says Steve Forbes

The British pound plunged to a record low in Asia on Monday morning, following last week’s announcement by the new British government that it would implement tax cuts and investment incentives to boost growth. By focusing on raising interest rates to cool inflation, central banks and governments have overlooked the importance of maintaining stable currencies, … Read more

From the Fed to the currency crisis in Europe, here’s what’s behind this sell-off in the financial markets:

Trader on the floor of the NYSE, June 7, 2022. Source: NYSE Stocks fell sharply, bond yields rose and the dollar strengthened Friday as investors heeded the Federal Reserve’s signal that the battle with inflation could lead to much higher interest rates and a recession. The sell-off was global on Friday, in a week in … Read more

2-Year Treasury surpasses 4.2%, 15-year high as Fed drives up short-term rates

Yields moved higher on Friday, with the 2-year Treasury yield reaching a new 15-year high as markets assessed the latest Federal Reserve rate hike and what it means for the economy going forward. The policy-sensitive 2-year Treasury hovered above 4.2%, reaching a 15-year high of 4.266% earlier in the session. It last gained 12 basis … Read more

Turkey cuts interest rates again as country struggles with inflation

The number of Russian tourists to Europe dropped dramatically during the summer, but rose in several other destinations, including Turkey (here). Onur Dogman | Sopa images | Light rocket | Getty Images Turkey’s central bank surprised markets again with its decision Thursday to cut its key interest rate, despite inflation in the country soaring above … Read more

Bank of England raises interest rates by 50 basis points, in seventh consecutive hike

The Bank of England warned that the UK will slip into recession later this year. The expected recession is expected to be the longest since the global financial crisis. Vuk Valcic | SOPA images | Light Rocket | Getty Images The Bank of England voted to raise its key rate from 1.75% to 2.25% on … Read more