Who is the house now?

Ipek Ozkardeskaya ipekScope

Yesterday was not a great day. Crude oil kept rising, fueling inflation expectations. Global yields kept rising on bets that central banks will have to raise rates to fight inflation, and equities fell. US technology fared better through the shock, while European stocks posted the strongest losses, with the French CAC 40 diving nearly 2%.

And guess what, the US Treasury’s announcement that it would triple the size of the initial bond buybacks, to buy up to $6 billion of outstanding securities set to mature in the 10- to 20-year sector, did nothing – absolutely NOTHING.

The US 10-year yield spiked past 4.83%, to the highest levels since November 2023, while the 20-year yield rose past 5.32% and hovers around the 5.30% mark – around the levels where US Treasury Secretary Scott Bessent came up with the brilliant idea that they would ‘at least double’ the size of the bond buybacks to tame the pressure on the longer end of the US yield curve.

Read the full article here.

Author

Ipek Ozkardeskaya

ipekScope

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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