Business

The yields on short-term American bonds rose significantly, an indicator that markets are expecting hefty interest-rate rises from the Federal Reserve. Pressure on bond yields was felt globally. Japan’s central bank offered to buy an unlimited amount of government bonds, an intervention designed to protect its 0.25% cap on Japan’s ten-year yield. Yields on two-year American Treasury notes briefly rose above those on the ten-year note for the first time since 2019 (government bonds with longer terms usually offer higher yields). Such an inversion of the yield curve is often taken as a sign that a recession is on the cards.