A global benchmark and two key European indexes hit new highs on Tuesday while the dollar rose in anticipation of faster inflation as volatility eased to lows last seen in February 2020 before the coronavirus pandemic. Yields on U.S. Treasury debt fell to their lowest in more than a month, while euro zone bond yields nudged down with markets in a wait-and-see mood ahead of a European Central Bank policy meeting and U.S. inflation data, both due on Thursday. The 10-year U.S. Treasury note fell 4.2 basis points to 1.528%, suggesting bond investors don’t see a pick-up in inflation, despite nagging jitters over the Federal Reserve’s insistence a rise in consumer prices will be transient.
