Risk markets stabilize, oil prices fall📉
Since then, risk markets have stabilized, with ADP employment growth slowing sharply in September (+89,000, lower than expected +158,000), and Eurozone retail sales data lower than expected (-1.2% month-on-month vs. -0.5% expected) ), Citi's US credit card data fell (-1.3% month-on-month in the first two weeks of September), and crude oil futures fell 12%, helping bonds temporarily stop the decline. However, in contrast to the Fed (policy tightening) over the past 24 months, The driver of the decline is different. The current yield movement is driven by a bearish steep move. The 2/10s curve reverses back to a level not seen in more than a year. Although the Federal Reserve's interest rate hike is nearing the end, considering that inflationary pressure will exist for a long time , 15 years of zero interest rate/quantitative easing excess was quickly corrected, with investors now demanding higher yield premiums and discount rates.
