Surging UK Inflation Signals To Fed Watchers That Battle Against Price Hikes Isn't Over: UK Bond Yields Soar To 15-Year Highs
Portfolio Pulse from Piero Cingari
UK inflation data for May 2023 showed a higher-than-expected 8.7% YoY increase, prompting traders to anticipate additional interest-rate hikes by the Bank of England. This has led to a rise in Treasury 2-year yields and may result in a negative session for the Ishares 1-3 Year Treasury Bond ETF (NASDAQ:SHY).
June 21, 2023 | 1:22 pm
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Higher UK inflation data for May 2023 has led to a rise in Treasury 2-year yields, which may result in a negative session for the Ishares 1-3 Year Treasury Bond ETF (NASDAQ:SHY).
The higher-than-expected UK inflation data has led traders to anticipate additional interest-rate hikes by the Bank of England, causing a rise in Treasury 2-year yields. This increase in yields is likely to negatively impact the Ishares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) as it invests in short-term US Treasury bonds, which are sensitive to interest rate changes.
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