Bond Yields Rise as Inflation Squeezes Economy, Fed Tightens

Yahoo Finance··US·Read original
4▲0 ▼3Impact / 5
Summary · why it matters

The relentless rise in bond yields is being driven not by warnings about the nation's debt but by an economy weakening under the tightening grip of inflation just as the Federal Reserve makes borrowing costlier for businesses and consumers. BlackRock chief investment officer of global fixed income Rick Rieder called the move not a crisis but an eye-opener, and noted it is something you have got to think about. Payroll services company Paychex said this week that we are in a low-hire, low-fire environment, while General Mills warned of more quarters of pressured margins from a big pickup in inflation in wheat, diesel, and packaging. Cracker Barrel called out a 6.1% traffic drop in its most recent quarter, and Darden said sales at its Olive Garden chain grew just 1.1% in the quarter, a read that much higher gas prices are swallowing up the disposable income of many households. The commentary comes as Fed hawks like New York Fed president John Williams continue to signal rate hikes.

Impact on assets 7

Consumer Discretionary▼ · 2 stocks
Darden Restaurants Inc
DRI
▼ NegativeDemandrelevance

Darden said Olive Garden sales grew just 1.1% as higher gas prices swallowed household disposable income.

Consumer Staples▼ · 1 stocks
General Mills Inc
GIS
▼ NegativeSupplyrelevance

General Mills warned of more quarters of pressured margins from a big pickup in inflation in wheat, diesel, and packaging inputs.

Cloud & Digital Infrastructure▲ · 1 stocks
Paychex Inc
PAYX
± Mixedrelevance

Paychex said we are in a low-hire, low-fire environment, a labor-market read with no clear directional impact on the company.

Digital Finance & Tokenization▲ · 1 stocks
Others▲ · 2 stocks
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