Bonds Fall, Dollar Rises as Traders Mull Waning Stimulus; Oil Up
- Gilts tumble as data push yields to highest level since Brexit
- Global equities decline amid mixed corporate earnings
Making a Bullish Case for the Pound Post-Brexit
This month’s selloff in global bonds deepened amid speculation that major central banks may be moving closer to scaling back their extraordinary stimulus measures. Oil climbed with the dollar.
The debt rout was led by gilts as data showing faster-than-estimated U.K. economic growth left traders betting on virtually no chance the Bank of England will cut interest rates through the end of 2017. Treasury yields jumped to the highest since May and the greenback rose against most major counterparts amid bets on a Federal Reserve hike in December. Stocks fell on mixed earnings, while Amazon.com Inc. plunged in extended trading after projecting sales that may miss analysts’ estimates. Oil approached $50 a barrel.