NEW YORK, June 15 (Reuters) – Bond investors are embracing safety in their portfolios as volatile markets price in a super-sized hike from the Federal Reserve following evidence of scorching inflation.
Investors have drastically shifted their expectations about Wednesday’s decision to a rate hike of 75 basis points (bps) – not the 50 bps the market was expecting last week. The increased hawkishness has sent equity markets tumbling and bond yields surging, briefly inverting the yield curve and pushing stocks into a bear market. read more
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