Traders have pushed yields up in the runup to the Federal Reserve’s meeting on Wednesday. The central bank is expected to keep rates steady this week, but an uptick in inflation has investors worried about further hikes later this year.
One reason for the acceleration in inflation: Rising oil prices, spurred by Saudi production cuts that have created a supply shortfall.
In a bumper week for central banks, decisions are also on tap from the Bank of England, Bank of Japan, the central bank of Turkey and several others.
U.S. stocks were mixed after Friday’s tech-led selloff. The Dow Jones Industrial Average edged slightly higher after the opening bell, while the S&P 500 Nasdaq Composite both slipped.
Treasury yields edged up. The 10-year note traded at a yield of 4.351%. If yields end the day above 4.339%, it will mark their highest level since 2007.
Most-active Brent contracts rose 0.9% to $94.77 a barrel, on course for their highest close in almost a year.
European stocks fell, led down by construction and tech shares, playing catchup with Wall Street’s Friday swoon.
Asian markets were mixed, with gains in mainland China and losses in Hong Kong. Japanese markets were closed.
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