US Treasury market hit by a renewed round of selling

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US Treasury market hit by a renewed round of selling via IrishTimesBiz

The US Treasury market was hit by a renewed round of selling as sharply rising European government yields underscored the growing hawkish chorus among the world’s major central banks in the face of surging inflation.

A sustained rise above zero for the German bund is seen paving the way for a test of 2 per cent and higher in the 10-year Treasury. But a more sustained rise in long-dated global yields worldwide amid growing unease about global inflation pressure is challenging that outlook and may weigh further on sentiment for Treasuries.

While the European Central Bank left policy on hold, officials expressed concern about elevated inflation, helping to intensify this week’s drive of Germany’s 10-year yield above zero for the first time since May 2019.

 

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