Bond Markets on Edge as Fed, BoE, and BOJ Weigh Inflation Risks

Global bond yields are rising due to inflation concerns and central bank uncertainty. This week's decisions by the Federal Reserve, Bank of England, and Bank of Japan will be crucial in determining the direction of global bond markets.

The US Treasury market has seen a significant increase in yields since late June, with the 10-year yield reaching around 4.678%. This is driven by inflation concerns, particularly after oil prices rose above $100 per barrel.

The Federal Reserve's two-day meeting on July 28-29 will be closely watched, as its policy guidance can move front-end rates and long-term yields. The Bank of England's decision on July 30 will also be important, with the bank's current Bank Rate at 3.75%. The Bank of Japan's meeting on July 30-31 will test whether bond markets believe inflation is under control.