U.S., European, Japanese bond rout deepens
10year Treasury yields hit 16year high above 4.88
Wall Street mixed, Euro STOXX 600 lower

NEW YORKLONDON, Reuters A rout in government bond markets deepened early on Wednesday with benchmark U.S. yields hitting fresh 16year highs as investors bet that persistently high interest rates will slow world growth and dampen the appetite for riskier assets.

The Treasury rout later retreated on a coolerthanexpected U.S. private payrolls report that helped stocks on Wall Street rebound from a sharp sellon Tuesday that had plunged the three main U.S. equity indexes to fourmonth closing lows.

Growth concerns weighed on crude oil and gold prices, and European equities edged lower for a third day as retailer shares fell on a consumer spending pullback.

The bond rally, whose price moves inversely to yield, was likely shortlived, with the September unemployment report on Friday now the market39;s next focus, said Kim Rupert, managing director of global fixed income at Action Economics in San Francisco.

The selloff has been really dramatic. It39;s been rapid. It39;s been huge, Rupert said. The market was so oversold that it was looking for a catalyst to rally on and found it in ADP.

Rupert referred to the ADP National Employment Report that showed U.S. private payrolls rose by 89,000 jobs in September, the smallest gain since January 2021.

The yield on 10year Treasury notes touched 4.884, a fresh 16year high in early London trade,…