- The 10-year Treasury yield broke above 5% for the first time in 19 years, sending the Dow down 500 points.
- December T-Bond futures hit a contract low as prices trended down, with bears holding the near-term technical advantage.
- Sticky inflation, with U.S. gasoline prices above $4.25 a gallon, reinforces expectations the Federal Reserve will raise rates on Wednesday and again later this year.
- Traders watch the contract low of 106 1/32 in December T-Bond futures as a selling opportunity with a downside objective of 100 or below.
Quotes
“Fundamentally, sticky inflation will likely only become more problematic with U.S. gasoline prices above $4.25 a gallon.”
“The Federal Reserve will likely raise U.S. interest rates on Wednesday, and odds are high that the Fed will hike rates one more time this year.”