Overseas Headlines – June 13, 2022

United States:

Bond Yields, Dollar Surge With Fed Bets as Recession Risk Grows 

The hottest US inflation in four decades will push the Federal Reserve to raise interest rates more aggressively this year, and a recession may not be far behind. Those are the dramatic signals coming from markets, which on Monday saw yields surging across the board: 10-year rates hit the highest since 2011, while their two-year equivalents jumped to levels last seen before the global financial crisis and 30-year yields climbed to the highest in more than three years.



Europe Bond Rout Intensifies as Traders Bet on Faster ECB Hikes 

A selloff in European government bonds gathered momentum as traders priced in a more aggressive pace of tightening from the European Central Bank amid mounting concern over the deteriorating inflation outlook worldwide.




India’s May Inflation Stays Above 7% on Costlier Food, Fuel 

India’s consumer price gains stayed above the central bank’s target, adding pressure on policymakers to stay hawkish despite raising the key rate by 90 basis points this year. Retail inflation rose 7.04% in May from a year earlier, the Statistics Ministry said in a statement Monday. That compares with a 7.79% increase in April, and a 7.10% gain seen in a Bloomberg survey of economists.



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