U.S. Treasury yields retreated from an eight-month high on Thursday while the dollar strengthened against major currencies, as investors reevaluated the Federal Reserve's interest rate policy for 2025 as the U.S. economy shows signs of resilience.

The selloffs that keep flaring in the world’s bond markets are pushing yields toward key thresholds amid escalating worries about elevated inflation, tempestuous politics and swelling government debts.

In the US, the Treasury market has been hit by concerns that president-elect Donald Trump will borrow freely and cut taxes. Driving these moves are government bond investors who are once again taking up the role of enforcers of fiscal discipline,

British markets are among the biggest victims of a global bond selloff that has spilled over into currencies and stocks this week.