Yesterday, Jerome caused stocks to plummet by indicating that they would raise rates more than previously expected. The odds of a 50 bps hike skyrocketed as he spoke. Stocks cratered, which makes sense.
But at the same time, BND closed the day at only a 0.11% loss. Sure, rates are tied indirectly to stock prices, but they're tied DIRECTLY to bond prices. Shouldn't a large rate hike not previously priced in have caused a much bigger decline in BND?
Submitted March 08, 2023 at 08:19AM by Syncronym https://ift.tt/VtfZcsJ
