Bond Buyback Fails to Stop Selloff as Oil Tops $107

Government bonds fell sharply on Wednesday, even as authorities launched a buyback operation meant to support the market. The move failed to attract buyers, and yields rose. The selloff came as oil prices climbed above $107 a barrel, adding pressure on global markets. Higher energy costs feed directly into inflation, and investors worry that central banks will keep interest rates high for longer. Separately, new data showed wholesale inflation picking up. That means prices charged by producers are rising again, a sign that consumer prices may follow. Taken together, the three developments point to a difficult backdrop: rising borrowing costs, expensive energy, and stubborn inflation.