During trading on Monday, 11.4.2022, the US stock indices fell sharply in conjunction with the European stock indices, amid concern from the Wall Street side that the possibility of 50 points hike in US interest rates will be a thing during the upcoming May meeting.
In light of the rise in US Treasury yields, the degree of risk rose in the markets on Tuesday 12.4.2022, in the meantime, the global stocks fell due to the decisions taken by China regarding the closure of some states due to the outbreak of the Coronavirus.
The US two-year bond yields have risen from 0.73% to above 2.5% since the end of last year, which is not an easy step, as this yield curve approaches the 10-year yield curve, which prompted investors to become concerned about the risks of recession in the US economy. In light of the rising rates of inflation.
On Tuesday 12.4.2022, we are expected to witness a rise in the US consumer price index in March to above the 8% level, and therefore this movement will be positive in favor of the Fed to raise interest rates, with the possibility of tightening during next May.