The outlook for worldwide inflation climbed to the highest level in almost two years, reflecting a rebound in oil prices.
Bond investors anticipate consumer prices will rise at an average rate of 1.45 percent a year, the most since May 2013 based on Bank of America Corp. data. The figure has climbed from about 1 percent as recently as January.
“Crude oil prices bottomed in the first quarter, and now they’re way above where they were two months ago,” said Tomohisa Fujiki, the head of interest-rate strategy for Japan at BNP Paribas SA in Tokyo. “That will help inflation rates.”
The benchmark U.S. 10-year yield was little changed at 1.89 percent as of 10:11 a.m. in Tokyo, according to Bloomberg Bond Trader data. The price of the 2 percent note maturing in February 2025 was 100 30/32.
Crude oil has risen about 5 percent this year, after tumbling 46 percent in 2014.
Central banks in the U.S., Europe and Japan are all trying to spur inflation. The Federal Reserve has kept its benchmark interest rate close to zero since 2008, in conjunction with about five years of government debt purchases to pump money into the economy. Policy makers and Europe and Japan are currently buying debt.
Inflation is still in check in the U.S., the world’s biggest economy. Consumer prices were probably unchanged in March from a year earlier, based on a Bloomberg survey of economists before a report Friday.