LONDON — Global government bonds have endured a brutal sell-off this week, pushing yields to multi-year highs and rattling stock markets, as investors look to Friday’s U.S. jobs report and euro zone inflation data for clues on where central banks go next.
The 10-year U.S. Treasury yield eased to about 5.2575% on Friday after touching a 24-year high of 5.3445%, while the 2-year yield sat near 4.8039% following dovish comments from Federal Reserve officials overnight, Reuters reported. European bonds were also hit hard, with French yields reaching 14-year highs. The pan-European STOXX 600 edged 0.4% higher by mid-morning Friday after closing 1.3% lower on Thursday, its lowest level in more than three months, with banking stocks on track for their worst weekly performance since April on worries that higher rates will dent the economy.
Asian shares fell overnight ahead of the U.S. nonfarm payrolls report, due at 1230 GMT, with forecasts centered on a gain of 90,000 jobs in September. The data is expected to shape expectations for the Fed’s next move. The dollar index, which gauges the greenback against six peers, was firm at 102.09 on Friday, its highest since April 2025 and on track for a third straight weekly gain. In Japan, underlying inflation in Tokyo accelerated to an annual rate of 2.7% in September, strengthening the case for further interest rate hikes; the yen traded at about 158.13 per dollar.
Oil prices held firm Friday after jumping overnight, with U.S. crude steady near $92.84 a barrel and Brent above $102, as the United States reportedly sent more troops and carriers to the Middle East and China suspended oil product exports, raising fears of worsening fuel shortages. Among corporate moves, Germany’s Commerzbank fell 2% after RBC downgraded the stock, and sportswear maker Puma dropped 1.2% after U.S. peer Nike projected a surprisingly steep drop in full-year revenue, citing weak demand in China and heightened competition, Reuters said.
