Bond Yields Wrenched Higher as Oil’s Inflationary Impact Sinks In
Borrowing costs around the world are spiking.
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Three weeks into the war, the bond market is being turned upside down. Central bankers have dashed the once-widespread expectations for easier monetary policy.
Short-term bonds plunged yesterday and the selling is continuing today. The UK, in particular, is turning into an epicenter of the turmoil, with 10-year yields hitting the highest level since 2008.
The drama kicked off on Thursday after the Bank of England said it “stands ready to act” against a surge in inflation, leading traders to ramp up bets on an interest-rate hike as soon as next month.