Global bonds fall after UK growth better than expected

Global bond markets fell on Thursday.

The US 10-year Treasury yield rose six basis points to 1.85 percent, pushing the S&P 500 down 0.3 percent.

European bonds also fell, with the UK 10-year gilt yield rising 10 basis points to 1.27 percent, the highest since the Brexit vote in June, after a report showed that the economy grew 0.5 percent in the July-September period, better than the forecast 0.3 percent.

According to Gary Pollack, a head of fixed-income trading at Deutsche Bank, the sell-off in bonds was the result of “a combination of better economic growth and changing expectations for monetary policies going forward”.

Oil rose though. West Texas Intermediate and Brent crude both rose about one percent.