Government bond yields rise amid reaction to hawkish signals

A global bond downturn pushed US Treasury yields to their highest level in three months on Monday, as investors’ reaction to the prospect of tighter monetary policy by dumping US and UK government debt.
The yield on the 10-year US Treasury note added 0.05 percentage points to trade above 1.5 per cent for the first time since June.
The UK’s 10-year gilt yield rose 0.05 percentage points to 0.973 per cent, around its highest since May 2019.
The moves continue a bond rout that began last week after relatively hawkish central bank meetings on both sides of the Atlantic.
The US Federal Reserve said that half of its policymakers expected US rates to rise in 2022 after consumer price inflation topped 5 per cent for three consecutive months.
The Bank of England also warned that UK inflation could exceed 4 per cent into next year, signalling it may raise borrowing costs from record lows. Analysts said the prospect of higher rates, along with persistently high inflation, was fuelling a revival of the widespread bets on higher yields that had been largely squeezed out of markets during a mammoth summer debt rally.