The benchmark 10-year US Treasury yield jumped, following two days of declines, after a flurry of US economic data such as retail sales and jobless claims and the European Central Bank’s announcement of less aggressive than expected tightening plans.
Investors also eyed hefty rate hikes by New Zealand’s central bank and the Bank of Canada, and a surprise rate hike by the Bank of Korea as well as policy tightening by the Monetary Authority of Singapore. US stocks had gained on Wednesday on hopes that price increases could be peaking. But Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut, saw Thursday’s trading action as a sign that there was little conviction behind those hopes.
“Today’s probably the right reaction,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute in St. Louis. “Until inflation is under control, it’s not under control. There’s too much uncertainty.”