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Joseph Wang, macro analyst / blogger at Fed Guy, notes that rising interest rates are a global phenomenon, spurred on by a substantial increase in energy prices.
He observes that financial markets across the world are factoring in increasingly aggressive rate-hiking cycles. In the U.S., he points out that the market has priced in an additional 25 basis point rate hike over the past week. Wang believes the situation may continue to deteriorate until hostilities related to the war conclude.
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Wang previously noted severe volatility in the bond market and reported that recent buyback operations have underwhelmed investors, as covered in a recent article. Earlier, he highlighted that markets shifted to pricing in almost four rate hikes, up from two the previous week, according to another update. These observations add context to his ongoing focus on tightening cycles and market reactions.