The unprecedented amount of cash the Federal Reserve has pumped into the financial system is proving more powerful for money-market rates than Chair Janet Yellen’s signals she will start turning off the spigot.
The record drop in U.S. government securities held in custody at the Federal Reserve is fueling speculation that Russia may have shifted its holdings out of the U.S. as Western nations threaten sanctions.
Treasuries fell, pushing yields on 10-year notes higher by the most since November, along with counterparts from developed nations, as signs the crisis in Ukraine is easing reduced demand for haven assets.
Deutsche Bank AG was one of the few firms surveyed by Bloomberg in January to correctly predict the worst rout in the U.S. Treasury market since 2009. Now, Germany’s largest lender says it’s time to buy.
Philippine three-year bond yields rose the most in seven months after data showing the fastest inflation since 2011 prompted the central bank to warn it has less scope to keep the benchmark interest rate on hold.