Treasury Yields Top 1.75% After Powell Spurs Bets on Inflation
“Treasury yields breached more key levels as bond traders boosted bets that the Federal Reserve will allow inflation to overshoot as the U.S. economy recovers. Yields on the benchmark 10-year note climbed as much as 11 basis points to 1.75% — the highest since January 2020, while the 30-year breached 2.5% for the first time since August 2019. Market measures of inflation expectations are now trading near multi-year highs, with traders paring back bets the Fed would start tightening as soon as late next year. The dollar rebounded against its major peers.”
BOE Vows to Maintain Stimulus Until Clear Signs of U.K. Recovery
“The Bank of England maintained the pace of its stimulus on the U.K. economy, saying the outlook remains unusually uncertain and it won’t tighten monetary policy until there’s clear evidence of a recovery. The central bank made no change to its target for asset purchases of 895 billion pounds ($1.2 trillion) and left the benchmark lending rate at record low of 0.1%. It will continue with pumping about 4.4 billion-pounds a week into markets by buying bonds.”
China Ramps Up Farm Imports to Cover Domestic Food Shortages
“China, the world’s biggest importer of farm commodities, ramped up purchases in the first two months of this year to plug growing local shortages and to keep food prices under control. The country shipped in almost 5 million tons of corn in January and February, more than five times the amount unloaded a year earlier, according to customs Thursday. That included an all-time monthly high of 3 million tons in January.”
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