Bonds reel as hot inflation fuels jumbo Fed hike fears

Business Recorder reported that global bond prices fell after October core US inflation came in at 0.3% month on month, above the 0.2% forecast. Comments from several Federal Reserve officials added to concern about a larger-than-usual rate increase in December, although futures markets still assign a 10% chance to a half-point move.

US two-year Treasury yields jumped 18 basis points overnight, while the dollar strengthened and gold dropped 2.6% before a small Wednesday recovery. Asian share markets were mixed, with the regional MSCI index up 0.2%; Brent crude advanced 0.7% to $92.16 a barrel after recent declines. The report also noted that traders expect further US rate increases into next year.