Bonds Everywhere Suffer as Rate-Hike Fears Swamp Traders
- Big question will be if Federal Reserve hikes next week: DB
- Yields are climbing again as traders look to Fed policy path
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Global bonds are slumping after two shock interest-rate hikes this week served traders a reality check that central banks are far from done fighting inflation.
Shorter-maturity Treasury yields are close to their highest since March, while their Australian equivalents have jumped to levels last seen more than a decade ago. Investors are back ditching sovereign debt after the Bank of Canada joined the Reserve Bank of Australia in surprising markets with more rate hikes to combat stubbornly fast consumer-price gains.