▸ Global bond yields climb after surprise jump in US wholesale inflation▸ Wall Street drifts lower to snap two-session winning streak▸ Bitcoin sets record high above $124,000 before reversing courseGlobal bond yields and the dollar rose yesterday while equity markets drifted lower after rising US wholesale inflation suggested that the economic impact of President Donald Trump's trade war is filtering through to the world's largest economy.Producer prices in the US rose 3.3 per cent in July compared with a year earlier, well above June's 2.4 per cent year-onyear gain and the 2.5 per cent expected by economists polled by Bloomberg.The data “indicates that the new tariffs are continuing to generate cost pressures in the supply chain, which consumers will shoulder soon”, said Samuel Tombs, chief US economist at Pantheon Macroeconomics.In response, two-year Treasury yields rose 5 basis points to 3.74 per cent by early afternoon in New York as traders sold the debt, bracing for a slower pace of interest rate cuts from the US Federal Reserve.
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