The sizzling global bond rally stalled on Thursday ahead of a key US jobs report, with a slump in Japanese debt adding to the nerves of Treasury traders already fretting that yields had dropped too far.
Treasury 10-year yields rose above 4.5% for the first time since 2007 as a more hawkish Federal Reserve adds to concern the bonds face a toxic mix of large US fiscal deficits and persistent inflation.
JPMorgan Chase & Co. and Western Asset Management are among those saying this month’s jump in bond yields represents a buying opportunity, given central banks are getting close to the end of their rate-hike cycles.
Central banks have ramped up their hawkish rhetoric this month but for bond bulls, that’s a good thing.