Bond Yields Surge as Fed Prepares Interest Rate Hike

Global bond yields hit multi-year highs on Tuesday, reaching fresh records in the US and Europe. The yields of 10-year USTs now exceed 5%, putting pressure on heavily indebted borrowers that have been shielded by resilient economic growth so far.

The Bank of England is set to announce its latest interest rate decision and quantitative tightening plans on Thursday. It will stop selling 20- and 30-year gilts, relieving pressure at the long end of the curve.

Brazil's central bank is expected to cut its benchmark Selic rate by a quarter point to 13.75% from 14.00%. This would be the fifth consecutive easing in Brazil, which has one of the highest interest rates among major economies.