Surge in German Bond Yields Triggers Fresh Rout in Global Debt
- Shifting European Central Bank expectations spur the increase
- Global central banks are stepping up tightening rhetoric
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The drop in global government bonds gathered pace Thursday, spilling over to equities, as German yields climbed to their highest level in 18 months in a sign that a hawkish shift by central bankers is penetrating the market.
While analysts described the moves as technical, most remain bearish on bonds, as investors adjust to comments by European Central Bank President Mario Draghi last week that spurred speculation policy makers will announce a tapering of bond purchases before the end of the year. The selloff extended into U.S. hours, as 10-year Treasury yields reached the highest since May.