Global Bond Markets Brace for Rate Hikes Amid Inflation Concerns

Global bonds are experiencing a slump after two surprise interest rate hikes this week, causing traders to realize that central banks are still fighting inflation. Shorter-maturity Treasury yields are close to their highest since March, while their Australian equivalents have jumped to levels last seen more than a decade ago. The tightening is convincing traders to rethink their bets of Federal Reserve rate cuts later this year, underscoring the threat that the battle against inflation may be far from over.