The concerns, however, haven’t completely gone away as Federal Reserve Governor Philip Jefferson said on Monday that stress among small banks could hit small businesses hardest.“This round of uncertainty that we’re seeing, it will likely continue for some more time,” said Manishi Raychaudhuri, Asia-Pacific head of equity research at BNP Paribas. “We haven’t seen the end of it.” He expects continued volatility for global markets going forward for at least one or two quarters.
“On one day, the market expects maybe a 25 basis points or maybe a 50 basis points rate hike. Just in a matter of one or two days, that outlook is changed to 50 basis points rate cuts in the second half of the year,” he said. Benchmark 10-year yields rose to 3.5317 percent, up from its U.S. close of 3.528 percent on Monday. They are also up from a six-month low of 3.285 percent reached on Friday, but remain below a 15-year high of 4.338 percent from Oct. 21.