Global Forex and Fixed Income Roundup: Market Talk
Dow Jones2026/07/30 05:06The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0506 GMT - An interest-rate hike by the Federal Reserve would have rocked an already weak equity and fixed income market, Thornburg Investment Management's Christian Hoffmann says. The Fed left rates unchanged, which "was not a forgone conclusion," the head of fixed income says, calling this an "uncomfortable hold." Although this comes on the back of some constructive inflationary data, oil is spiking again amid geopolitical uncertainty, he says. "We have been led to believe that this is no longer a Fed that telegraphs its every move well before it happens and doesn't share its thoughts frequently in a broad range of venues," he says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
July 30, 2026 01:06 ET (05:06 GMT)
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Deutsche Bank points out that as central banks in the US, Europe, and Japan are tightening policy simultaneously, the market may still be underpricing the eventual terminal rates. With oil prices remaining high, inflation may spill over into core inflation and wages. Moreover, financial conditions have not tightened in tandem, which could weaken the effect of rate hikes. Citing the experience of 2022, Deutsche Bank notes that the market then expected a total of around 200 basis points of Fed rate hikes in the first year, but the final figure exceeded 400 basis points, illustrating that the market often underestimates the terminal rate.