ECONOMIC WEEK AHEAD: September 14-18

Global bond yields rose across the board last week (chart). The US 10-year Treasury bond yield climbed 19 basis points to 4.97%. The UK's 10-year gilt closed at 5.35%, near its highest level in decades. Even Japan's 10-year, at 2.99%, is near multi-year highs.

The European Central Bank (ECB) delivered its third rate hike of the latest tightening cycle on Thursday, lifting its policy rate to 2.50% and raising its inflation and GDP growth projections. ECB President Christine Lagarde declined to signal what comes next, but futures markets now price roughly a 50% chance of a follow-up rate hike in October, up from about a 33% chance before the meeting.