Treasuries are heading for their longest gaining streak in a month, buoyed by a sharp retreat in oil prices on optimism that talks between the US and Iran will lead to the resumption of tanker traffic around the Arabian Peninsula.

Only last month, Andrew Bailey again insisted quantitative tightening is here to stay. The Bank of England governor has been adamant the UK central bank needs to keep slashing its bond holdings to clear the decks for the next crisis and take interest-rate risk off its balance sheet.

German bond yields rose to the highest level since 2011 as surging oil prices prompted bigger bets on interest-rate hikes, even as the European Central Bank kept its benchmark unchanged.

Three consecutive downside inflation surprises and the slowest private-sector wage growth since 2020. It should be enough to convince investors that the Bank of England is entertaining interest rate cuts.

Traders boosted wagers on faster Bank of England and European Central Bank interest-rate hikes after surging oil prices reignited inflation fears.

Traders boosted wagers on faster Bank of England and European Central Bank interest-rate hikes after surging oil prices reignited inflation fears.

German bond yields fell after spiking on Wednesday as investors watched for further disruption in the oil market following the latest flare-up in conflict between the US and Iran.

The two-year US Treasury yield climbed back toward last month’s peak amid a selloff in global bond markets as rising oil prices rekindled worries about inflation.

Treasuries edged lower as traders awaited a US employment print that may give clues on the Federal Reserve’s interest-rate path after Chairman Kevin Warsh struck a dovish tone on inflation.

Foreign investors, long an anchor for the UK government bond market, turned net sellers of gilts in May as climbing yields failed to offset concern about the country’s political turbulence.

Traders are reappraising the scope for the European Central Bank to lift interest rates as sliding oil prices reduce the risks of sticky inflation.

Traders are reappraising the scope for the European Central Bank to lift interest rates as sliding oil prices reduce the risks of sticky inflation.

The pound and gilts edged higher after UK Prime Minister Keir Starmer resigned and the path to power began to clear for the frontrunner to succeed him.

Traders added to wagers for Federal Reserve interest-rate hikes, fully pricing a quarter-point increase by September after a spike in oil prices revived inflation concerns.

The UK’s government bonds fell after Andy Burnham’s victory in a special election renewed political uncertainty, prompting investors to demand a higher premium to hold the country’s debt.

Faced with ongoing volatility in the oil market, Bank of England Governor Andrew Bailey and his colleagues are trying to strike a path that’s tough on inflation without harming growth and jobs. To do so, they’re taking a history lesson in football.

Gilts extended their winning streak to five days after UK inflation held steady in May, easing pressure on the Bank of England to raise interest rates.

Treasuries fell Wednesday after a gauge of private-sector employment growth left intact expectations that the Federal Reserve will raise interest rates this year.

Treasuries retreated from near their best levels of the past month as the first of three labor-market reports this week backed wagers that the Federal Reserve’s next move will be to raise interest rates.

Traders trimmed wagers on the extent of interest rate hikes from the Bank of England this year, fueled by falling oil prices on optimism over signs of progress in talks between the US and Iran.