Fixed income

Fixed-income trading revenue declined 17%, the firm said in a statement Tuesday, leaving Goldman the only major Wall Street bank so far to have posted a drop for that business.

The U.S. 30-year yield rose to the highest level since November, joining the rest of the Treasury market in offering a return of at least 4% after labor-market data.

The bond market faces a bigger threat than recent rate hikes: the notion that rates will stay elevated even after the U.S. central bank's inflation fight is all over.

Investors offloaded $12.6 billion of Treasuries last year, but that figure was dwarfed by a record $121.8 billion purchase of U.S. agency debt, higher-yielding securities.

The yield on the two-year Treasury moved to be as much as 32 basis points higher than the 10-year yield, which slid in the wake of the Fed’s announcement that it was raising its overnight benchmark by 75 basis points.

The evidence of the Fed’s loss of control has multiplied uncomfortably in recent weeks. For its sake and that of both the domestic and global economy, the central bank desperately needs to regain control of the inflation narrative.

It all threatens to add a fresh twist for Treasury investors, who are already grappling with haywire moves and near double-digit losses with few precedents in the modern trading era.

A consensus has formed that the Federal Reserve waited too long to start tightening money. Fed watchers are still disagreeing about another question: Is the central bank tightening too much and too fast now?

US Treasuries extended losses and stock futures remained down as investors considered how a better-than-expected US jobs report might impact the pace of Federal Reserve policy tightening.

Investors are on edge over whether the US central bank’s tighter policies will induce a recession. A chorus of Fed officials has fallen behind calls to keep hiking to counter price pressures.

Concerns that central-bank rate hikes may induce a recession are keeping investors guessing about the outlook for the economy as rising food and energy costs squeeze consumers, and volatility has picked up.

Yields have jumped so much this year, roughly doubling those on 10-year Treasuries, that it recalls past buying opportunities that paid off when the tide turned.

The yield jumped as much as three basis points to 3.11%, extending an advance that has seen the rate more than double this year.

Japanese institutional managers -- known for their legendary U.S. debt buying sprees in recent decades -- are now fueling the great bond selloff just as the Federal Reserve pares its $9 trillion balance sheet.

The Bloomberg Global Aggregate Index has fallen 11% from a high in January 2021. That’s the biggest decline from a peak in data stretching back to 1990.

The moves come after Powell struck a hawkish tone on Monday, prompting traders to rapidly ratchet up estimates for how aggressively the Fed will tighten monetary policy this year.

The repricing comes as Federal Reserve Governor Michelle Bowman suggested a hike of that magnitude could be on the table if inflation readings come in too high.

Treasuries led losses in global bond markets as inflation concerns, stoked by soaring oil prices, overshadowed any haven bids on the back of Russia-related tensions.

With minimal coupon protection, exceedingly long duration and super-tight credit spreads, the powder keg was fully loaded. Now we have sizzling inflation and hawkish central bankers providing us with the spark.

Government bonds worldwide are extending declines after the worst six months in five years, a Bloomberg index showed. Meanwhile, the pool of negative-yielding debt shrank to a six-year low.