(Bloomberg) — Treasuries and other government bonds slumped as investors, who are bracing for another record-size auction of US debt, digested inflation data that stands to forestall central bank interest-rate cuts in some parts of the world.
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The selloff pushed yields higher around the world on Wednesday — led by those in Australia and Europe, where traders are reassessing the path ahead for domestic monetary policy. The yield on 30-year Treasuries climbed to within a a basis point of its the highest level of the year as investors look ahead to a $70 billion sale of five-year notes at 1 p.m. New York time, the most ever offered for the tenor.
“There is a bit of concern that inflation might be ticking up in the short-term and is stickier than people thought,” said John Fath, managing partner at BTG Pactual Asset Management US LLC. At the same time, “I don’t think the supply issue is helping. There is…
