Global yields surge, economic data stronger than expectedđ
This week, China and Hong Kong are still on their Golden Week holidays. The biggest news on the macro front is the surge in global yields, with the 30-year U.S. bond yield hitting 5% and the 10-year German Bund yield hitting 3%. The yield on future Japanese government bonds also exceeded 80 basis points.
Over the past week, several officials from the Federal Reserve and the European Central Bank have issued hawkish comments, emphasizing that the last leg of inflation will be the most difficult to deal with and continuing to say that any expectations for policy easing are premature. However, What really triggered the "taper tantrum"-style surge in bond yields in mid-week was actually the result of strong economic data. In addition to the better-than-expected U.S. ISM manufacturing index, the rebound in JOLTS data shocked the market and triggered risk aversion. In August The number of job openings rebounded to 9.61 million, much higher than the expected 8.815 million, raising the possibility of a November interest rate hike to more than 30% and dragging down the 10-year yield to rise by 12 basis points on Tuesday. The SPX index also fell that day. 1.3%.
