Unsettling European Inflation Data Upset the Bond Market Apple Cart

Global bond yields back on the rise

Highlights

• Woeful JOLTS and consumer confidence data dragged the odds of a November Fed rate hike back down to 50% from 65%

• The Fed is doing what it does best, which is to fight yesterday’s war at exactly the wrong time — inflation is in the rear-view mirror

• What if we get the hard landing — then equities tumble 30% and Treasuries rally as hard as the economy lands

• The Chinese market lagged the region (flat on the day) despite cuts in mortgage rates by major lenders