* At the start of trading in London, the yield on 10-year notes was up 2.106%, its highest since July 2019. At its last trading, it was up 8 basis points on the day.
* Yields gained 7-10 basis points across the bond curve as hopes of progress in Russia-Ukraine peace talks bolstered risk assets and dampened demand for safe-haven assets.
* In Europe, the yield of the German and British debt experienced sharp rises.
* Unrest over high inflation, exacerbated by Russia’s invasion of Ukraine, also helped explain the sell-off in bond markets.
* With inflation nearing 8% in the US, the war in Ukraine could fuel price pressures through rising energy costs, further disruption to supply chains, or even a reshuffling of trade and global governance that could lead to a persistent rise in prices.
* “The fear is that central banks don’t have what it takes (to quell inflation),” said Mizuho’s Colin Asher. “There are reasons to speed up policy tightening: core inflation is at 6% and they are still buying assets. One could argue that this gradualist approach is what the market is worried about.”
(Reporting by Andrew Galbraith in Shanghai and Dhara Ranasinghe and Sujata Rao in London; Spanish editing by Carlos Serrano)
Source: Ambito
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