Oil prices dropped temporarily, tech stocks and coins pumped today due to trump statement about middle east peace and Nvidia report but the actual FOMC statement is ready to eat these bullish news and that is rate hike before December
They explicitly stated they will hike rates if inflation stays stuck above 2%
Not a "higher for longer" pause, An actual hike
Equities are gaining momentum and rising but Bitcoin is trying to set a support around $77k
But if you look at the BondMarket, it is pricing in a much harsher reality
30-year Treasury yield surged to around 5.18%, hitting its highest level since 2007
10-year Treasury yield raised to 4.67%, its highest close in 18 months
Normally, increase in yields means a good economy but right now, they signal fear of energy driven inflation
Markets initially hoped the energy shock will be short
But The recent bond sell off shows a growing realization that oil supplies will be disrupted for longer than expected
This means inflation will stay higher, forcing central banks like the Federal Reserve to keep interest rates high or even raise them rather than cutting them as the market had previously hoped
As trump change stance everyday what if #MiddleEast peace deal falls through again and global shipping costs spike again, the Fed is going to hike rates that have already stated
They just told us exactly what they are willing to do, but the market is trying to ignore it
Don't get blinded by the green on your screen
The underlying liquidity just got a lot more hawkish
Be mature and think in broader perspective rather then depending on charts only
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