Sustained selling in bond markets around the world continued today as investors watched Asian central banks for signs of recovery.
A first round of sell-offs were triggered by Bank of Japan and many investors now see a downturn for the long-running bond bull market.
U.S. 10-year Treasury yields reached almost 2.6%, the highest since March last year, while Japanese 10-year yields hit 0.087 per cent, an almost six-month record.
Bloomberg reports that Chinese government officials are recommending slowing or possibly halting US Treasury purchases although it is unclear whether the recommendations have been adopted by the Chinese government.
Central bankers worldwide now face the painful task of slowing or stopping the purchases of government bonds, known as quantitative easing, which have sustained the bond markets in the aftermath of the financial crisis.