Bond Rout Returns

Global bond yields lurched higher Monday as a massive rise in oil prices and ongoing gains in equities boosted inflation expectations and highlighted the policy divergence between Europe and the United States, Yahoo reported. Benchmark 10-year US Treasury yields touched 2.51% in European trading, the highest since Oct. 2014, amid the biggest rise in global crude prices in at least 15 months. Yields on German bunds maturing in 10 years, the European borrowing cost benchmark, rose 7 basis points to 0.42% while 10-year Gilt yields traded past 1.5% for the first time since May. Longer-dated bond yields in Europe were also marked higher Monday, with 30-year debt sold by France, known as OATs, rising 9 basis points to 1.85%.