London/Tokyo —
The benchmark German bond’s shift to positive yields marks a turning point for euro-area debt, reflecting record-high inflation that is being worsened by supply chain disruption. “There is a limited amount that domestic interest rates can do to ease global markets for gas, oil and semiconductors but generally tighter monetary policy around the world would slow the economy and relieve some of this pressure,” Foster said.
Shares in Sony Group slumped to the lowest level since late October, losing more than 10% after gaming rival Microsoft said it will buy developer Activision Blizzard.Two-year Treasury yields, which track short-term interest rate expectations, were last at 1.063%, after climbing to 1.075% — the highest since February 2020 — as traders positioned for a more hawkish Fed ahead at its policy meeting next week.