Federal Reserve Bank of Cleveland President Loretta Mester said the US central bank will likely need to raise rates once more this year and then hold them at higher levels for some time to get inflation back to its 2% target.
Oil fell for a fourth day as macroeconomic concerns overshadowed physical market tightness to cloud the demand outlook.
The dollar kicked off the last quarter of the year on the front foot on Monday as the prospect of higher-for-longer U.S. rates provided solid support, pushing the yen to an 11-month low.
Treasuries began the week on the back foot after a US government shutdown was averted, eliminating a point of uncertainty for traders and returning their focus to the path ahead for interest rates.
Inflation in Tokyo slowed more than expected in September, offering support for the Bank of Japan’s view that prices are set to cool further, and thus ultra-easy policy needs to stay in place.
Yields on 30-year Treasuries are on track for their largest quarterly jump since 2009, stoking anxiety that the bond rout of the past few months could reverberate across financial markets.
The US benchmark oil price hit $95 a barrel for the first time in more than a year after a drop in stockpiles at the nation’s major storage hub to critical levels highlighted a widening global supply deficit.
The 10-year Treasury yield reaching 5% depends on whether investors are convinced the economy will continue to strengthen and that the Federal Reserve will keep interest rates high for longer, researchers at Bank of America said.
The U.S. is expected to indefinitely extend a waiver granted to South Korean chipmakers Samsung Electronics and SK Hynix on needing licenses to bring U.S. chip equipment into China, Yonhap news agency reported on Wednesday.
On Tuesday evening, the Senate released a deal that is likely the last chance to avert a government shutdown.
U.S. Treasury yields scaled a fresh 16-year peak on Tuesday, underpinning the dollar near a 10-month summit, as investors responded to the message from the Federal Reserve and other major central banks of rates staying elevated for longer.
Japan’s world-beating stock rally should continue to fuel sales in both its primary and secondary equity markets through next year, according to BofA Securities Japan Co.
SoftBank Corp. will decide as early as Monday to raise as much as ?120 billion ($809 million) via Japan’s first public offering of bond-type class shares, according to people familiar with the situation.
Oil prices rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand.
Oil headed for its first weekly loss in four after the Federal Reserve flagged a further rise in US interest rates this year, damping appetite for risk assets and overshadowing physical tightness in the crude market.
