Metals extended their stellar gains on Thursday, driving another rally in Bloomberg’s commodity index as investors continue to fret about how Russian sanctions will impact the market. Government bonds retreated amid an upbeat global growth outlook.

Aluminum and nickel led the advance[1] as the BCOM Index flirted with the highest level since 2015. U.S. 10-year Treasury yields climbed to 2.89 percent after leaping on Wednesday in the wake of the Federal Reserve’s Beige Book report, which showed a solid outlook for the economy despite trade concerns. European bonds played catch up, and yields in the region jumped.

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In the equity market, European stocks struggled for traction following two days rising and in the wake of a mixed bag of corporate earnings, even after shares across Asia built on gains from a day earlier. Miners rose amid the commodity rally, and energy firms climbed in the wake of an industry report showing crude inventories declining. West Texas oil also advanced.

For once though, all the action seems to be outside the equity space as the commodity rally accelerates and investors ponder the outlook for rates and the bond market. Optimism over expansion has been tested by the flattening yield curve[2], though there’s also been some respite for traders as geopolitical tensions showed signs of dissipating.

Elsewhere, the Australian dollar fluctuated after employment in the country rose less than forecast in March. It turned higher amid the commodity rally. The yen slipped as U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe agreed to work closely on bilateral trade.

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