Investors across asset classes rushed to adjust for the risk that inflationary pressure may be more persistent than previously thought.

The dollar extended gains for a second day, strengthening against Group-of-10 currencies. The Norwegian krone was little changed after an earlier rally on the expected benefit to the Scandinavian country from higher energy prices.

The yen weakened amid concern over a Japan’s dependence on oil imports and as confidence among the nation’s large manufacturers worsened, adding to the case for the central bank to maintain ultra-easy monetary settings a while longer.

The policy-sensitive two-year Treasury yield jumped about eight basis points, pushing it back to 4.1% as traders weighed the announcement from OPEC+, which had previously given assurances that it would hold supply steady. Treasuries had ended the first quarter on Friday with yields falling as investors wagered that interest-rate cuts were on the horizon. Click here to read full article