U.S. Treasury bond yields hit a high

Bond prices worldwide dropped amid worries that China’s plan to relax coronavirus restrictions would fuel inflation.

Since mid-November, the US Treasury equivalent rate has increased by 11 basis points to around 3.94%.

European bonds are trading lower as a result of the ECB’s hawkish comments.

Despite Tuesday’s global bond sell-off, spreads on emerging market countries’ dollar-denominated debt shrank as investors’ appetite for risky assets increased.

The extra yield that investors require to retain on emerging market bonds in comparison to comparable Treasury bonds has declined by 11 basis points, per the JPMorgan Chase & Co. index.

According to Stephen Innes, managing partner of SPI Asset Management, “China’s voracious desire for raw materials and everything related to energy will drive up the prices of these commodities.”