Bonds fell around the world as investors braced for the biggest US rate hike since 2000 and a wave of policy tightening by other central banks. Dip-buying sent stocks in Europe higher.
The US 10-year yield traded around 3% after hitting the milestone on Monday. Germany’s benchmark rate rose above 1% for the first time since 2015, while the corresponding yield on U.K. bonds climbed above 2%. Australian bonds slid, and the currency jumped, after the nation’s central bank increased borrowing costs by more than many had expected.
Meanwhile, investors betting that global bonds are still expensive took shelter in equities.