The highest US inflation since 1981, and speculation of an increase in the Fed Funds Rate (FFR) 150 bps, colored the movement of the bond market in the past week. Market participants are eyeing a surge in US inflation as of March which reached 8.5% YoY, sparking anxiety around a recession. However, investors’ confidence that inflation in the United States (US) this March, had reached its peak, before the Fed’s aggressive monetary policy caused the benchmark Government Bonds (SUN) to move mixed at the weekend. Investors are watching speculations of a 50 bps FFR increase in May, June and July.
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