Global bond yields rose on Tuesday, amid growing caution over the extent to which the European Central Bank will add stimulus to boost an ailing economy this week and rising hopes that Berlin could loosen its purse strings.
Germany’s 30-year benchmark bond yield DE30YT=RR briefly broke into positive territory for the first time in more than a month, while U.S. Treasury yields US2YT=RR US10YT=RR US30YT=RR climbed to 18-day highs.
Safe-haven assets have been caught up in the fixed income sell-off, with gold XAU= slipping to a one-month trough and Japan’s yen plumbing a five-week low. But equities .MIWD00000PUS failed to make gains, as weak Chinese producer prices data dampened the mood, and U.S. stocks were seen opening lower.
The bond moves come as markets are gearing up for Thursday’s European Central Bank (ECB) meeting, which is widely expected to deliver a cut to interest rates and point to further bond-buying stimulus.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.