Government bond yields surged world-wide after a strong report on the U.S. labor market boosted investors’ expectations that central banks will begin steadily raising interest rates to fight inflation.
The benchmark 10-year U.S. Treasury yield, which helps set borrowing costs on everything from mortgages to corporate loans, settled at 1.930%, its highest close since December 2019. The 10-year German bund climbed to 0.2%, its highest level in nearly three years and further into positive territory after years below zero.
Yields, which rise as prices fall, began climbing in Europe after European Central Bank President
Christine Lagarde
on Thursday said inflation was higher and more sustained than expected, opening the door to interest-rate increases this year. Expectations that the Federal Reserve will raise rates multiple times in 2022 sparked an early…
