Bond Report: Benchmark 10-year Treasury yield approaches 4% as China’s economic rebound adds to inflation pressures

U.S. bond yields moved higher on Wednesday on concerns that China’s post-COVID economic recovery may create more difficulties for central banks in their battle against inflation and result in even higher interest rates. Meanwhile, the spread between 2- and 10-year Treasury yields inverted more deeply, to almost minus 90 basis points, during the New York morning and headed for its most negative reading since October 1981.

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What’s driving markets

News that China’s manufacturing sector is expanding…