U.S. Treasury yields retreated from an eight-month high on Thursday while the dollar strengthened against major currencies, as investors reevaluated the Federal Reserve's interest rate policy for 2025 as the U.S. economy shows signs of resilience.

The selloffs that keep flaring in the world’s bond markets are pushing yields toward key thresholds amid escalating worries about elevated inflation, tempestuous politics and swelling government debts.

In the UK, the Labour government’s decision in October to loosen policy compared with prior plans added to investor unease. Public borrowing will be 4.5 per cent of GDP in the current fiscal year, according to official forecasts, and then fall to 3.6 per cent next year.

British markets are among the biggest victims of a global bond selloff that has spilled over into currencies and stocks this week.