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The sell-off in government bonds continues to gain momentum following last week’s pickup as investors lower their expectations on central bankers’ immediate economic stimulus.
Weakened bonds have sent yields to their highest levels since late June, the Wall Street Journal reports, and the effects continue to ripple through the financial markets today. Yields were up slightly on the US 10-Year Treasury note at 1.686% amid speculation that the Federal Reserve will raise interest rates later this month.
The 10-year German Treasury yield was up by 0.02% this morning to 0.04%—near its highest level since the Brexit referendum. In Japan, 10-year government yields remain below zero from a low of minus 0.29% in late July. [WSJ]
