(Bloomberg) -- The global bond market lost steam after notching its longest winning run in 2024 as the European Central Bank raised its inflation forecasts after delivering a widely expected rate cut.

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In a historic move that saw the ECB slashing borrowing costs ahead of the Federal Reserve, officials led by President Christine Lagarde said that while the inflation outlook has improved “markedly,” they’ll “keep policy rates sufficiently restrictive for as long as necessary.” The remarks were enough to lift bond yields across the board, with Treasuries also joining the move as traders positioned for Friday’s US payrolls data.

“The ECB eased, but in order to get the votes, they had to agree to an increase in inflation expectations,” said Andrew Brenner at NatAlliance Securities. “So we are calling it a hawkish ease. And US Treasuries are back in the red. It does not change our view to take profits before the employment number tomorrow.”

US 10-year yields rose two basis points to 4.30%. The S&P 500 fluctuated. European shares held near a record high. The euro rose 0.1% and the yield on 10-year German bonds climbed four basis points to 2.55%.

“Today’s widely expected interest rate cut from the ECB will come as a welcome relief to the euro zone economy,” said Dean Turner at UBS Global Wealth Management. “The timing of the next move from the ECB is uncertain. But with the disinflationary process firmly underway, the ECB, along with other central banks, should feel confident enough to ease policy.”

On the eve of the US payrolls report, Wall Street also waded through a slew of data. Jobless claims topped estimates, US labor costs increased by less than previously reported and the trade deficit widened.

Corporate Highlights:

US regulators are investigating whether a deal Microsoft Corp. struck with AI startup Inflection may have been structured to avoid scrutiny, the Wall Street Journal reported, citing a person familiar with the matter.

Lyft Inc. is expecting gross bookings to grow about 15% at a compound annual rate in the next three years, the company said Thursday ahead of its first investor day.

Instacart announced a new $500 million share repurchase program, the third round of buybacks the grocery delivery company has authorized since September as it seeks to boost confidence in its growth potential.

Newmont Corp., the world’s biggest gold miner, said its plan to raise $2 billion is on track as its asset sales attract bidders.

Lululemon Athletica Inc.’s international sales growth and new women’s merchandise helped propel a higher full-year profit outlook.

Trafigura Group posted its smallest first-half profit since 2020 — down 73% from a year earlier — as the commodity giant adjusts to calmer conditions across its key energy and metals markets.

SpaceX’s massive Starship rocket blasted off on its fourth major test flight, as the Elon Musk-led company works to make the vehicle operational and ready for regular space trips.

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Key events this week:

China trade, forex reserves, Friday

Eurozone GDP, Friday

US unemployment rate, nonfarm payrolls, Friday

Some of the main moves in markets:

--With assistance from Winnie Hsu, John Viljoen and Sujata Rao.

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