Sell-off in bond markets in global markets

Ahead of Wednesday’s critical US inflation data, bonds are on the rise. On Monday, US government bonds fell across all major maturities in Asian trading, while the yield on the two-year bond, which is sensitive to policy rates, exceeded 5 percent. The 10-year yield rose three basis points to 4.29 percent. The strong economic outlook in the US and expectations that the Fed will maintain high interest rates for an extended period are pushing bond yields higher. JPMorgan raised its expectation for the 10-year bond yield by the end of this year to 4.20 percent from 3.85 percent. The dollar rally is being paused at the beginning of the week. The Bloomberg Dollar Index, which rose 1 percent last week, is falling 0.4 percent, also influenced by the strengthening Japanese yen. The People’s Bank of China’s dollar/yuan reference rate of 7.21 is supporting the yuan. The offshore yuan is gaining 0.4 percent against the dollar. The rise in Japanese banking stocks in Asia is offset by the decline in Hong Kong’s Hang Seng, which was closed due to a storm on Friday. MSCI Asia Pacific is flat while Hang Seng is down more than 1 percent. US stock futures are slightly higher. Nasdaq 100 futures are trading 0.2 percent higher. Brent crude oil active contract remains above $90 despite falling 0.2 percent per barrel. Three data sets will be released in Turkey today at 10:00; the Central Bank of the Republic of Turkey will announce the July current account balance data at 10:00. A current account deficit of $4.50 billion is expected in the Bloomberg survey. The Turkish Statistical Institute will announce industrial production and unemployment data for July at the same time. Treasury and Finance Minister Mehmet Şimşek will join the NTV live broadcast at 12:00.