World Street | Boston Fed President sticks to hawkish tone, US bond yields heat up, and more

World Street offers you a sneak peak into top global news

Skimming through some of the top global news, we have Boston Fed President vouching for higher than long interest rates, which triggered US bond yields on an upward trajectory. Other than this, Airbnb registered strong March quarter performance, thanks to upbeat global travel demand. Here's more on World Street's May 9 edition, take a deep dive -

Hawkish narrative continues...

Boston Fed president Susan Collins remarked that it would require more time "than previously anticipated" to lower inflation, aligning with other policymakers who emphasise the need to maintain current interest rates. Nevertheless, she maintains optimism that inflation can be brought back to the Fed's target of 2 percent within a reasonable timeframe, especially with a job market that continues to demonstrate resilience and health.

Bond yields heat up

The benchmark US Treasury note yield experienced a slight increase overnight as investors assessed the latest statements from Federal Reserve officials, seeking insights into the future direction of interest rates. The yield on the 10-year Treasury note rose by 3 basis points to 4.4 percent. Meanwhile, the yield on the 2-year Treasury note saw a marginal uptick of less than 1 basis point, reaching 4.8 percent.

Travel demand bolsters Airbnb

Vacation rental firm Airbnb announced a rise in quarterly earnings, driven by heightened travel activity in international markets while North American bookings slowed down during the period. The San Francisco-headquartered company recorded a net profit of $264 million for the quarter ending in March, while total revenue for the first quarter surged by 18 percent year-over-year, reaching $2.14 billion.

AstraZeneca takes a step back 

AstraZeneca announced its decision to withdraw its Covid-19 vaccine from the market due to low demand. Despite never receiving authorisation in the US, the vaccine was extensively utilised worldwide during the initial phase of the global vaccination campaign. Since receiving emergency approval from British regulators in late 2020, over 3 billion doses have been distributed globally.

US halts weapon sales to Israel

President Joe Biden stated that he would refrain from supplying offensive weapons to Israel, expressing concern for the well-being of over 1 million civilians sheltering in Rafah, the last major Hamas stronghold in Gaza.

Argentina's inflation battle

Prices in Argentina have skyrocketed to such an extent that the government has multiplied the denomination of its largest banknote in circulation by five, now valued at 10,000 pesos, approximately equivalent to $10. With Argentina's annual inflation rate soaring to 287 percent in March, one of the highest globally, this move is seen as a response to the country's economic challenges.

(With inputs from Reuters and other agencies)