High Yield

Central banks have been steadily adding gold to their reserves even though government bonds offer yields around 5.3%, raising the question of why they would hold an asset that pays nothing. Analysts point to gold's role as a hedge against inflation, currency risk and geopolitical uncertainty, particularly after the freezing of Russian reserves pushed central banks to diversify away from the dollar.

European Central Bank policymaker Olli Rehn said elevated yields are expected to dampen the pass-through of energy prices into broader inflation. The remarks from the Finnish central bank governor come as the ECB weighs how financial market conditions affect its fight against inflation.