Just when you may well have imagined that economic markets could not switch any funkier — they have. On Tuesday, Jay Powell, US Federal Reserve chair, indicated that the Fed may possibly elevate rates more than predicted in order to combat inflation.
Two-12 months Treasury yields duly jumped higher than 5 for every cent for the initial time considering the fact that 2007. But 10-12 months yields scarcely moved. This pushed the produce curve deeper into an Alice-in-Wonderland point out recognised as “inversion”, in which it expenses extra to borrow revenue brief expression than lengthy time period. By Wednesday, the