(News Bulletin 247) – The 10-year yield on the US Treasury bond is moving to its highest levels since the start of the year, following the minutes of the US Federal Reserve’s last monetary policy meeting which took surprised the market.

Most of the time, the “minutes”, that is to say the minutes of the last monetary policy meeting of the Federal Reserve (Fed), do not create huge surprises. This document gives a detailed view of the monetary debates and opinions that animate the members of the American central bank. But the information often remains in line with expectations.

However, the market seems to have been taken from behind this time. Released Wednesday evening, the “minutes” focused on the late July meeting, when the Fed raised rates by a quarter point and a speech by its chairman, Jerome Powell, suggested a break might come.

But the minutes of this meeting show concern on the part of Fed members for the future in terms of inflation.

“Indeed, the monetary institution’s report indicates that ‘most participants continued to perceive significant upside risks to inflation, which could necessitate a further tightening of monetary policy'”, notes John Plassard by Mirabaud.

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A restrictive monetary policy longer than expected?

For Deutsche Bank strategists, the Fed minutes gave investors confidence that the Fed’s restrictive policy could last “for a while.”

“So while inflation has been more encouraging lately, the activity data, which remains solid, should allow the Fed to maintain its hawkish stance heading into the meeting. of September”, continues the German bank.

“The minutes were stricter than we thought,” Art Hogan of B. Riley Wealth Management told AFP. “It looks like there’s a small cohort that thinks we’ll need to raise rates further this year. That’s enough to invite investors to take profits” on stock markets, he added. .

As a result, US debt rates are rising sharply in the market. The yield on the 10-year US Treasury note reached almost 4.3%, a level not seen since the end of 2007, according to Marketwatch. The two-year rate, more influenced by monetary policy expectations, also rose and stood at 4.987%, close to its peaks of last March.

“It doesn’t matter whether or not you think the Fed will go through with what they said in their minutes. The fact is that 10-year yields are soaring, which in the modern handbook for stock traders, is bad news on many levels,” said Stephen Innes of Spi Asset Management.

Wall Street indeed ended lower on Wednesday evening, with tech which suffered particularly, the Nasdaq Composite losing 1.15%. What can also be seen in the start of the session in Paris, the CAC 40 fell by 0.6% with the biggest drops Worldline (-2.9%), Dassault Systèmes (-1.8%), Thales (-1 .6%) or STMicroelectronics (-1.25%), technology groups.