Treasuries extended their slide as traders braced for US inflation data that could cement concerns the Federal Reserve is dragging its feet on price growth. US yields climbed again on Thursday, with the 30-year bond yield up three basis points to 5.23%, the highest in almost two decades, while the 10-year yield rose two basis points to 4.7%. The Fed's decision to hold rates on Wednesday jolted the 30-year yield up as much as 14 basis points, and swaps now imply around a two-in-three chance of a quarter-point rate hike in September. The core PCE price index, the Fed's preferred inflation gauge, is forecast to slow to 0.2% in June from 0.3% in the prior month, and an early reading of second-quarter growth is expected at an annualized 2%. Thirty-year breakeven rates, a gauge of inflation expectations, leapt six basis points on Wednesday, the most since the day after Donald Trump's 2024 election win.
Schroders PLCRising bond yields and rate hike expectations pressure asset managers like Schroders.