Government bond yields around the world surged overnight only to ease again, as concerns around bulging fiscal deficits dominate a volatile market. The benchmark 10-year yield traded as high as 5.338% today, its highest intraday level since April 2002, before paring gains. European bonds followed a similar pattern, with French and U.K. long-dated yields jumping as much as 10 basis points before reversing course. Back in the U.S., stock futures have perked up along with the Treasury market. The most-actively traded Brent crude futures rose again to around the $100 a barrel mark.
Markets remain sensitive to fiscal policy developments and central bank signals. Investors are closely watching inflation data and government spending trends for further clues on the direction of interest rates.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing