The dollar boasted its strongest single day gain in 15 months as the 10-year US Treasury yields jumped by the most since early March. The US Federal Reserve stunned investors by signaling it might raise interest rates at a much faster pace than assumed, sending bond yields and the dollar sharply higher. The S&P 500 fell 0.54% to 4,223.70, the Dow Jones Industrial Average was down 0.77% to 34,033.67 while the Nasdaq Composite went down 0.24% to close at 14,039.68.

Asian stocks declined with US and European futures on Thursday after the Federal Reserve officials sped up their expected pace of policy tightening. The dollar and Treasury yields held overnight gains. An MSCI gauge of Asian shares was on track for its biggest slide in a month with the index of Asia-Pacific shares outside Japan down about 0.6%. Japanese stocks underperformed, while Hong Kong and Chinese equities fluctuated with the Japan’s Nikkei falling 1%.

Oil prices were insulated by the prospect of a stronger world demand and still tightened supply, with Brent reaching its highest since April 2019 before running into profit taking and headwinds from the sharply higher dollar. Brent was last off 1% at $73.88/bbl, while US crude lost 1% as well to trade at $71.50/bbl.

Kenya’s debt relief will rise by $1 Billion With DSSI Extension.  About $800m will be suspended payments to non-Paris Club creditors and the remainder to other official bilateral creditors mainly Japan, France, and Germany.  East Africa’s biggest economy has already deferred an estimated $639 million in debt service dues in the six months to end-June.