FAST FIVE: Futures Storm Higher After Smaller Than Expected RBA Rate Hike Boosts Speculation Global Tightening Is Ending
“That implies bull steepening in bond markets and should provide some support for equity markets if other central banks follow suit.” As a result of the fresh burst of hope in peak hawkishness, money markets now signal the Fed will hike rates a further 125 basis points at most by March compared with as much as 165 basis points seen following the third three-quarter point increase last month.
These pared expectations spurred a rally in Treasuries across the curve on Tuesday.
Liquidity in the region was relatively thin as China and Hong Kong markets were closed for a holiday.
gained, led by metal and finance stocks.
So that just shows how much investors were reappraising things yesterday given how volatile markets have been these last couple of years.