Two in a row?

In this buzz: Investors avoid risk assets and what is the latest thing freaking people and equity out ; and more…

Back to back losing weeks…
Stocks are starting the day lower again and are at risk of putting together back to back losing weeks, if they don’t rebound on Friday. It’s the same old story for equities, as U.S. Treasuries climb on inflation concerns, investors are avoiding risk assets.

Two-year yields climbed…
… to levels not seen since 2006. Thursday morning the yield had reached a high of 4.937%.
✳ 10-year treasuries were up 2.6 basis points to at 4.022%, above the 4% mark last seen in November.

The latest thing freaking people out is…
✳ a statement from Atlanta Fed President Bostic saying he believes that rates will go yet higher and remain there “well into 2024” as the Fed battles inflation.
✳ Minneapolis Fed President Kashkari added some fuel to Bostic’s fire by stating that further rate increases may be warranted and that the Fed may have to pick up the pace of rate hikes again.

It spook equities…
That little statement seemed to spook equities as at its last meeting the Fed had slowed its roll with a 25 basis point hike. This was a marked decrease from the previous five hikes of four 75 basis point hikes followed by a 50 bp increase.

Less than stellar…
As you all know by now, investors are concerned that the Fed, by doing its job fighting inflation will drag the economy into recession. Wednesday’s Feb ISM data showed a contraction in manufacturing and there have been concern about the stamina of the consumer as evidenced by less than stellar retailer earnings.