- Government bonds slumped, wiping out early gains in US equity futures, as traders speculated central banks will keep interest rates elevated to quell inflation. The dollar reached its highest point since March.
- Germany’s 10-year yield increased to the highest since 2011 and the STOXX 600 declined 0.6%, pulled down by mining shares. Rio Tinto declined as much as 5.2% as China’s property troubles impacted on the outlook for natural resources.
- After the barrage of central bank decisions last week, traders are more and more anxious that rising oil prices risk fanning inflation, which could make it hard for policymakers to cut rates anytime soon. Oil resumed a rally as hedge funds piled on bets tightening supplies will fuel demand.
- ECB's Kazaks: September's hike may allow an October pause.
