The bet that the Federal Reserve will raise rates again in October has already tightened market sentiment even further.
BlockBeats said that expectations for another Fed rate hike in October have quickly heated up, with market pricing approaching nearly 70%. The yield on the 10-year U.S. Treasury briefly rose to 5.14%, and the long-duration Treasury ETF TLT refreshed its closing low. For risk assets like BTC and ETH, the real trouble isn’t a single official’s statement, but rather the combined tightening of inflation metrics, long-end interest rates, and financial conditions.
On one side, officials are divided over whether policy should be tighter or looser. On the other, the bond market is already moving long-end yields to high levels ahead of time. If inflation and the PMI continue to support hawkish pricing before the October FOMC, risk appetite may be even harder to restore; if yields can’t hold above 5%, the pressure will continue to spill over into long Treasuries and interest-rate-sensitive assets. Are you more focused on the October meeting itself, or on whether the 10-year U.S. Treasury can hold above 5% first?
Source: BlockBeats
Figure 1: Rate-hike bets for October intensify · Information highlights
Image source: https://www.theblockbeats.info/news/63780
BlockBeats said that expectations for another Fed rate hike in October have quickly heated up, with market pricing approaching nearly 70%. The yield on the 10-year U.S. Treasury briefly rose to 5.14%, and the long-duration Treasury ETF TLT refreshed its closing low. For risk assets like BTC and ETH, the real trouble isn’t a single official’s statement, but rather the combined tightening of inflation metrics, long-end interest rates, and financial conditions.
On one side, officials are divided over whether policy should be tighter or looser. On the other, the bond market is already moving long-end yields to high levels ahead of time. If inflation and the PMI continue to support hawkish pricing before the October FOMC, risk appetite may be even harder to restore; if yields can’t hold above 5%, the pressure will continue to spill over into long Treasuries and interest-rate-sensitive assets. Are you more focused on the October meeting itself, or on whether the 10-year U.S. Treasury can hold above 5% first?
Source: BlockBeats
Figure 1: Rate-hike bets for October intensify · Information highlights
Image source: https://www.theblockbeats.info/news/63780
