Domestic debt markets is where we're more concerned about the impact of rising yields.
Several emerging markets already had very significant fiscal weaknesses before the COVID-19 pandemic and we expect their debt ratios to rise over the next years and if the cost of funding is going up we could see even worse debt trajectories in Brazil and South Africa.
The Bank of Canada on Wednesday left its key overnight interest rate unchanged at 0.25%, as expected, and said the Canadian economy was proving to be more resilient than anticipated to the second COVID wave and containment measures.
The 5-year and 7-year note yields were up 4 basis points, while that of the benchmark 10-year note hit a near 13-month high.
The US yield curve was a little flatter on Monday, with the spread between 2-year and 10-year notes at 144.1 basis points, after hitting on Friday its steepest since September 2015.
Rising oil prices also put some upward pressure on borrowing costs, helping push a key gauge of the market's long-term euro zone inflation expectations to the highest levels since 2019.
The headwinds from US Treasuries remain strong but euro bond bears seem to be getting less aggressive as the ECB meeting draws closer.
Bets that US stimulus would boost inflation and growth pushed government bonds worldwide to their worst performance in years in February. Central banks so far have appeared relatively sanguine about the rise in bond yields.
On Thursday, Germany's 10-year yield was down around 3 basis points at -317% at 1610 GMT, after rising 5 basis points on Wednesday.
Yields are down from their highs this week, but pressure remains. US Treasury yields rose on Wednesday, alongside euro area government bond yields and UK gilts, pushing stock markets and other low-yielding safe assets lower on Thursday.
Italian bond yields were last unchanged, pushing up the gap between 10-year Italian and German yields a touch higher to around 104 bps.
A Fed report said activity in the American economy expanded only "modestly" and job gains were slow in recent weeks, but firms are becoming more upbeat about their prospects as Covid-19 vaccines are rolled out nationwide.