FAST FIVE: Futures Storm Higher After Smaller Than Expected RBA Rate Hike Boosts Speculation Global Tightening Is Ending

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“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.

Categories: ZH