Eurozone benchmark bond yields were on track for their first weekly decline since early August on Friday, as investors scaled back expectations for further European Central Bank interest-rate increases following a sharp rise in global borrowing costs. 50%, implying almost a 50% probability of a second rate hike before the end of the year.

55% on Monday. Read more: Global Market: Nikkei gains 1% as AI, chip stocks rally; BOJ hikes ratesThe move came as investors reassessed the outlook for monetary policy following a week of major central-bank decisions.

S. Federal Reserve raised interest rates on Wednesday and adopted a more hawkish stance, while the Bank of England kept rates unchanged but warned that elevated energy prices could intensify inflation pressures.

ECB has also signalled further tightening risks after raising borrowing costs last week. 49% on Friday.

5723% on Tuesday, its highest level since June 2009, but remained on track for a weekly decline of around 2 basis points. 23%.

3123% on Monday, its highest since September 2023, and was headed for a weekly increase of about 5 basis points. Read more: Global Market: Yuan hits 4-year high as traders bet on further gainsThe divergence between longer and shorter-dated bonds reflected shifting expectations over the pace and extent of monetary tightening.

Reuters has reported that some market participants believe rate-hike expectations have moved too far, with elevated energy costs potentially weakening economic growth and eventually reducing inflationary pressures. S.

94% on Friday after falling about 6 basis points on Thursday. 041%, its highest level since July 2007.

Longer-dated Treasury yields found some relief after Fed Chair Kevin Warsh reinforced the central bank's focus on bringing inflation back toward its target. The Fed's September rate increase was its first in more than three years, while 16 of 18 policymakers projected at least one additional hike by the end of 2026.

Investors nevertheless continued to price a more aggressive rate path than indicated by the Fed's official projections. This has kept pressure on global bond markets as investors weigh persistent inflation against the potential economic damage from higher borrowing costs.

5531% on Tuesday, its highest since September 2008. 15 basis points on Tuesday, its highest level since July 2012.