The collapse of the bond market captures the fears of inflation, the forecasts of recession

U.S. Treasury bond yields rose Friday, extending one of the biggest fixed income market dips of the past seven decades as investors grapple with double concerns of rising inflation and debt-fueled attempts to relaunch economic growth.

Yields on benchmark 2-year government bonds, trading as low as 26 basis points in September last year, were set at 4.195% – the highest since late 2007 – at the start of New York on Friday. , when traders reinstated Federal Reserve rate hike bets following a series of hawkish comments from President Jerome Powell earlier this week.

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