Class CNBC Interview 9/28/22
September 28, 2022
WBBM Noon Biz Hour 9/29/22
September 29, 2022By Paulo Trevisani
U.S. Treasury yields tumbled after the Bank of England revived quantitative easing this morning, but the drop could be short lived.
Folloing a global trend, the two-year yield had lost 0.169 percentage point to 4.139% by early afternoon on Wednesday, while the 10-year was down by 0.190 percentage point, to 3.773%. In both cases, it was the largest one-day decline since early 2020, according to Dow Jones Market Data.
Peter Cardillo, chief market economist at Spartan Capital Securities, said bond markets had pushed yields too high, before getting sidetracked by the BoE’s dovish move.
“I think yields have reached a short term peak and are likely to bounce around from these levels.” Mr. Cardillo expects the BoE to reverse back to monetary tightening to fight inflation. “I don’t think this will be long-lasting,” he said.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
