Global Bonds Erase All Gains Since Powell’s Pivot in December
- Treasury 10-year yields advance following US CPI data
- TD Securities sees risk of price pressures shifting higher
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US inflation data has erased the last remnants of a global bond rally that started in December with the hope that the Federal Reserve had finally pivoted to favor interest-rate cuts.
A Bloomberg index of global debt has dropped 3.5% this year, wiping out all of its gains since Dec. 12, the day before the Fed announcement that month. Slower-than-forecast UK inflation numbers for January offered some relief to Treasuries on Wednesday, lowering the US 10-year yield a couple of basis points to 4.29% following Tuesday’s 14-basis-point surge.