Bond selloff may mean fewer rate hikes; traders await CPI and Warsh

· Economy · United States

Bond markets are starting to do some of the lifting for central banks around the world by pushing up borrowing costs themselves, potentially reducing the number of benchmark interest-rate hikes needed to get inflation under control, according to Bloomberg. In the US, bond traders are looking to the latest consumer-price inflation figures and a planned appearance by Federal Reserve Chairman Kevin Warsh for insight into how quickly the central bank will continue raising interest rates.

Why it matters：If bond markets keep pushing up borrowing costs, central banks may need fewer rate hikes, shaping the path of global monetary policy.

Key points

  • Bond markets are pushing up borrowing costs themselves.
  • This could reduce the number of rate hikes needed to control inflation.
  • US traders await CPI data and a planned appearance by Fed Chairman Kevin Warsh.

Sources (original reporting)

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