US Treasury yields climb further as global bond selloff eases
Yields extended their rise to end the week following a global bond rout and stronger-than-expected US economic data.
US Treasury yields continued to climb to end the week, extending gains following a global bond selloff and a batch of stronger-than-expected US economic data, according to CNBC.
The move higher in yields came as the broader rout in global bond markets, which had pushed borrowing costs up in major economies in recent sessions, showed signs of slowing. Even so, US yields kept rising, reflecting investors' recalibration of expectations around the economic outlook and monetary policy.
Stronger data feeds the move
Economic data released in the United States came in stronger than analysts had anticipated, a factor that typically reduces expectations for near-term interest rate cuts and puts upward pressure on yields, since investors demand higher returns when growth and inflation expectations firm up.
Rising Treasury yields have broad implications across financial markets, influencing borrowing costs for mortgages, corporate debt, and other loans, as well as the relative attractiveness of bonds compared with stocks.
The move caps a volatile stretch for global fixed-income markets, with investors continuing to weigh incoming economic indicators against central bank policy signals in determining the near-term direction of yields.
Sources
- U.S. Treasury yields tick higher as global bond rout slows — CNBC — Top News
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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