RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure 
Bank of Japan Likely to Delay Rate Hike Until July as Economists Eye 1% by September 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
The U.S. treasury auctioned several bonds last night and the yield in those auctions indicated that the financial markets are not overly worried about or betting for further sharp hikes from the U.S. Federal Reserve, which has hikes rates thrice since last December.
Treasury auctioned 3-month bills at 102 basis points, which is 2 basis points higher than the previous auction a week ago but 16 basis points lower than in July. The 2-year auction yielded 134.5 basis points, which is 5 basis points lower compared to the previous auction in July. The 5-year auction yielded 174.2 basis points, down 14.2 basis points the previous auction in late July, and down 31.5 basis points from its auction in December.
The Federal funds future is also pointing to a receding hike bets. According to today’s value, the market is pricing just 31.5 percent chance that there will be a 25 basis points hike in December.
