World stock markets have bounced back from sharp falls in March as banking sector strain roiled investors, who bet the turmoil would mean global rate hikes would soon end."Global central banks' narrow focus on combating inflation has gotten more complicated as they are now faced with the added task of maintaining financial stability," said Thomas Poullaouec, head of multi-asset solutions APAC at T. Rowe Price.
Benchmark 10-year Treasury yields were down 4 basis points at 3.56% after scaling a four-week peak of 3.639% on Wednesday. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, fell almost 6 bps to 4.21%, having hit almost 4.29% on Wednesday, the highest since March 15.
Shah at Principal Global Investors said she expected two-year yields to move higher but not as high as the 5% levels reached in March just before the banking turmoil.The yen weakened 0.1% to 134.56 per dollar, while sterling was last trading at $1.2444, little changed on the day.will get a new specialist board to manage monetary policy that will be chaired by the governor but have independent expert members with more power over the setting of interest rates., U.S. crude fell 1.8% to $77.
Senior correspondent on the London markets team covering European sovereign bond markets and big macro and financial themes.