Full reversal, for today

Thursday 20th October 2022

It’s a very mixed day, but generally the reverse of yesterday. The US dollar has gained strength, bond yields have pushed higher and equities have fallen, despite some string corporate earnings. NAB’s Taylor Nugent says we are back to worrying about inflation and central bank’s pursuing elevated interest rate paths. US 10 year yields reached a 14 year high overnight, as the Fed’s Neel Kashkari declared he had not seen any signs yet that inflation had peaked. Higher than expected inflation numbers in the UK and Canada have added to the mood, although gilt yields have fallen as markets assume a more balanced approach by the government, although looking at the political shenanigans overnight the environment is far from stable. And Russia is stepping up action against Ukraine, adding to global uncertainty. Hence, the volatility.

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