Treasury yields nudge at 4.50, dollar gains
Chinese shares retreat on property fears, preholiday caution
Investors assess outlook ahead of U.S. inflation figures

LONDON, Sept 25 Reuters Global shares fell on Monday, extending last weeks slide as central banks reinforced the message that interest rates would stay higher for longer, while investors braced for highstakes U.S. inflation data on Friday.

Last week brought a mixed bag for investors.

On the one hand, the likes of the European Central Bank and the Bank of England signalled they might not raise rates again. On the other, the Federal Reserve kept rates unchanged, but Chair Jerome Powell made it very clear the soft landing that many investors are banking on was not his basecase scenario.

The MSCI AllWorld index, which is heading for its worst monthly performance this year, with a 3.6 drop, was down 0.2 on the day.

U.S. 10year Treasury yields have nudged at 4.5 for the first time since October 2007, and on Monday were up 5 basis points at 4.491, set for their largest monthly rise in a year, reflecting investor unease over the economic outlook.

Its not about the fact that the 10year is over 4.5 whatever the number is, you get this feeling in the market the pain threshold is getting closer. That is the story, said Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management.

So far, investors have been pleasantly surprised by how well equitymarket performance and valuations have held up,…