Bonds Tumble as Dollar Climbs on Tax Plan, Economy: Markets Wrap

A global bond rout deepened as optimism over the health of the U.S. economy and President Donald Trump’s tax-cut plan pushed Treasury yields higher with the dollar. Stocks were mixed as investors began to assess the implications of the much-anticipated tax proposal.

Australian and Japanese bonds joined a global sell-off with German bunds with Treasury yields reaching the highest levels in more than two months as investors raised their expectations for the Federal Reserve to raise rates one more time this year despite some of Chair Janet Yellen’s colleagues continuing to push back at her contention more hikes are on the way. The dollar added to a rally against all major peers. Japanese stocks rose, while they traded sideways elsewhere in Asia and European equity futures pointed to a slightly firmer open.