If everyone was expecting Fed’s decision on the interest rates hike yesterday, today they are thinking how to survive with the new numbers.
While it was only a suggestion about possibility to prolong tightening by Fed, still it was scary enough. Investors believe that there is a chance to see the tightening if Fed will receive new data about high level of inflation of growths in economy.
According to the strategist Norihiro Fujito, American economy has pretty big expansion right now, and Trump with his official cabinet wants to extend it even bigger. Norihiro believes that it will increase the inflation level, and raise the bond yields.
Analysts give 50 chances to the possibility where Federal Reserve is going to hike the interest rates next year not two, but three times.
The ten-years Treasury yields went up, and reached 2.587 percent, gaining almost 0.8 percent since the time when Donald was announced the winner of the recent elections.
The 2 year yields also climbed up by 10 points and stopped at 1.29 percent. It is the biggest hike in one day for these yields since the 2015. In Asian region, they stopped on 1.268 percent.
The new numbers for yields at the USA became a dangerous threat to the other emerging markets which can’t response properly to these changes.
Chinese market is losing an income, as investors are taking their money. Its national currency yuan went down, and lost few more points against American dollar.