Markets Bracing for Key Inflation Data and ECB Rate Decision

Global markets are bracing for a pivotal week ahead of key inflation data and a European Central Bank policy meeting. The US Treasury is preparing to double its longer-dated bond buybacks, with the first operation scheduled for Wednesday.

The global selloff in bonds has pushed borrowing costs higher, raising concerns over government financing costs, corporate borrowing, and stretched equity valuations. Short-term US and euro zone yields have risen to multi-year highs, while 30-year yields across major markets are hovering around levels not seen in well over a decade.

The ECB is widely expected to raise interest rates by another 25 basis points on Thursday, matching its June move. However, investors will be watching for clues about the central bank's future rate path and whether it will pause after this increase.