Walsh's "hawks" lit interest-rate bets, but bond investors didn't buy

After Walsh’s reaffirmation of his determination to reduce inflation, the market’s speculation that Federal Reserve Chairman Walsh’s interest rate would soon rise raised doubts among institutional bond investors, including the Dutch Bank’s investment solution and Brandywine’s global investment management, arguing that Walsh’s speech was not enough to convince them that Fed officials would actually act. According to the swap traders, the Fed was more likely than interest-free at its policy meeting in mid-September. While the final decision will depend to a large extent on the non-farm employment data published this week and the inflation data that were subsequently published, the monetary policy-sensitive rate of return on United States domestic debt for the two-year period was still the highest in more than two months. Christoph Bushe, Chief Investment Officer of the Bank of the Netherlands, stated that he was avoiding long-term bonds because they were vulnerable to market concerns about the Fed ' s inability to effectively control inflationary pressures。