Bond market showing signs of concern even as Fed cuts rates

Thur 11/07/2024

by Ellie LeTu

Source: Financial Times

• Bond market concerns

  • Bond yields hit its highest marks in four months.

    • 10 year yield shot up to 4.44%.

    • 30 year yield hit 4.60%.

  • Bond market selloff driving yields higher.

  • Anticipation that Trump’s policies will send inflation higher.

• Investors trading bonds for riskier assets

  • S&P 500 and Nasdaq both hit record highs on Wednesday.

  • Equities and crypto seen as obvious beneficiaries of a Trump presidency.

• The Fed’s post-election rate cut

  • Fed cut rates by another quarter point.

    • This following a half point cut last month.

  • Jerome Powell remains “equally concerned” with threats to employment and inflation as Trump prepares to take office.