The 10-year U.S. breakeven rate -- a bond-market gauge of inflation expectations -- exceeded 3% this week for the first time on record in data going back to 1998.
Last week, the European Central Bank surprised markets when it signaled a faster stimulus exit despite increased risks to growth.
“I think there’s further to go on the rate re-pricing front -- we’re in a new, higher inflationary regime with hawkish central banks everywhere and although there are growth risks, recession risks still aren’t dominant,” said Imogen Bachra, a rates strategist at NatWest Markets Plc.
-With assistance from Marcus Wong.
This article was provided by Bloomberg News.