U.S. Treasury 10-year yields were on course for their biggest monthly increase in more than a year on Wednesday as investors built up bets that the Federal Reserve will raise interest rates before the year is out.
The growing prospects of a rate hike, perhaps next month, lifted the dollar against many major currencies, pushing it up to a one-month high against the Japanese yen.
An increase in market-based rates and a firm dollar initially kept a lid on world stocks, but Europe hit a two-week peak, following a 1 percent rally in Japan’s Nikkei 225, driven by the weak yen.
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