Treasuries Start Year on Back Foot as Global Rate-Cut Bets Ease
- Yields on US, European government bonds rise at least nine bps
- Move reflects doubts over scope of interest-rate cuts in 2024
This article is for subscribers only.
US Treasury yields rose sharply, joining a global bond selloff as traders pared bets on deep interest-rate cuts from major central banks this year.
The benchmark 10-year yield rose as much as nine basis points to 3.97%, while similar-maturity German bund yields jumped nine basis points to 2.11%, the highest in more than two weeks. The equivalent UK rate rose 15 basis points. Shorter-dated Treasuries led the selling pressure, holding the bulk of their yield rise late in New York trading, and the Bloomberg Dollar Spot Index posted its biggest one-day gain since March 15.