While Fed up waiting, markets lose faith in own bets
Financial markets appear to have a case of double doubts – unsure the U.S. Federal Reserve will hold its nerve in delaying interest rate hikes to 2024 but now second-guessing their own aggressive assumptions of a tightening late next year.
Investors entered April in a more sanguine mood after one of the worst quarters for long-term bonds in 40 years.
U.S. yields are drifting back lower as the second quarter kicks in despite a blowout U.S. jobs report for March, the highest reading for service sector growth ever, trillions of dollars of more government spending in the pipeline and ongoing inflation angst. And it’s not entirely clear why.