MILAN, May 11 Reuters World shares rose on Wednesday and bond yields slipped further below recent peaks ahead of inflation data in the United States that will offer a guide to how aggressively the Federal Reserve will raise rates.

European equities extended their bounce from twomonth lows and U.S. futures also gained before the release of the keenly awaited datapoint which analysts say could show inflationary pressures in the world39;s biggest economy are peaking.

MSCI39;s benchmark for global stocks rose 0.3 by 1044 GMT after sliding on Tuesday to its lowest level since November 2020 on fears Fed tightening could significantly slow down the global economy. The index is down 17 so far this year.

The panEuropean STOXX 600 equity benchmark index rose 1.3. U.S. equity futures rose, with the Nasdaq and SP 500 eminis up 1.5 and 1.2 respectively.

Concerns over faltering growth, exacerbated by the latest virus lockdowns in China, curbed a selloff in government bonds that saw 10year U.S. benchmark yields surge past 3 this month for the first time since December 2018.

It39;s an unanchored market where people don39;t know where yields are going to. The growth side is coming more and more to the fore in terms of market concerns, said Charles Diebel, head of fixed income at Mediolanum International Funds.

If inflation continues to print higher and higher the market will continue to sell off. Intuitively inflation cannot keep going up as base effects will unwind at some point…