Treasury yields climb as rate-increase fears mount

Treasury yields climb as rate-increase fears mount

Stocks















Bloomberg

Sovereign bonds extended declines on Tuesday, with the 10-year Treasury yield approaching 2% as investors grapple with the implications of global monetary-policy tightening.

The US 10-year yield climbed above 1.95%, a level last seen in December 2019, with some investors predicting it could rise as high as 3% this year as the Federal Reserve battles the hottest inflation since the 1980s. Yields ticked higher through most of Europe as power prices in the region surged, adding to worries about price pressures. The

dollar gained against a basket of peers.

Basic resources led an advance in the Stoxx Europe 600 index as iron ore roared past $150 a ton after China gave country’s steel industry more time to rein in carbon emissions. BP Plc gained after reporting strong earnings and announcing a share buyback, but BNP Paribas SA dropped about 4% after fourth-quarter revenue missed analysts’ estimates. S&P 500 and Nasdaq 100 and European futures fluctuated after Wall Street stocks ended a choppy session in the red, hurt by the technology sector.

Investors are awaiting data on Thursday expected to show stubbornly high US inflation. That could inject further volatility