Bonds are slumping around the globe as investors raised the odds to over 50% the Federal Reserve is slated to increase interest rates this year.
Based on Bloomberg futures data, traders see a 58% chance the US central bank will raise rates next month during their December 15-16 meeting, from 33% a month ago.
The 10-year Treasury yields hit its seven-week peak of 2.24% Wednesday as Fed Chair Janet Yellen implied a December rate hike. German yields touched a two-week high, while Australia’s 10-year yields climbed for a sixth day Thursday.
Increase in yields emphasizes the Fed’s influence on the global debt markets. Treasuries are gliding borrowing rates higher even as economic growth decelerates in China, and central bankers in Europe and Japan signal bolstering asset buying programs.
The material has been provided by InstaForex Company – www.instaforex.com