GLOBAL MARKETS - Global Stock Index Falls with Bond Yields

GLOBAL MARKET - NEW YORK/LONDON, July 11 (Reuters) - A global index of stocks edged down and bond yields fell on Thursday after U.S. inflation data boosted bets on interest-rate cuts while the yen surged against the dollar, raising questions about whether Japan intervened to boost its currency.

U.S. Treasury yields dropped across the board after U.S. consumer prices unexpectedly slipped 0.1% in June after being unchanged in May, while the annual increase was the smallest in a year, reinforcing views that inflation was abating.