Euro Zone, Japan Bond Yields Hit Multi-Year Highs as Brent Jumps 3% Above $92
Updated
Updated · Yahoo Finance · Aug 31
Euro Zone, Japan Bond Yields Hit Multi-Year Highs as Brent Jumps 3% Above $92
3 articles · Updated · Yahoo Finance · Aug 31
Summary
Euro-area and Japanese borrowing costs climbed to fresh multi-year highs on Monday, with Japan’s 2-year yield at a 31-year peak and euro-area long yields at their highest in more than 15 years.
Brent crude rose 3% to just above $92 a barrel after the U.S. attacked an Iranian island in the Strait of Hormuz and Tehran said it retaliated, reviving inflation fears and fresh bond selling.
Rate expectations hardened after Fed Chair Kevin Warsh’s Jackson Hole speech: markets now price about a 60% chance of a September Fed hike, up from just under 50% last week, while the ECB is widely expected to raise rates on Sept. 9-10.
Stocks stayed cautious as that outlook sank in—Europe’s STOXX 600 slipped 0.2%, U.S. futures edged lower and gold headed for its best month since January—while Friday’s U.S. payrolls and Sept. 11 CPI data loom as the next test.