Treasuries’ Selloff Momentum Slows as Bond Bulls See a Rebound

  • U.S. debt pares losses as yields end week little changed
  • Morgan Stanley, Sri-Kumar predict yields falling to fresh lows
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Treasuries pared losses, with 10-year note yields ending the week near where they started, in a win for bond bulls who bet that the biggest selloff in a year wouldn’t last even amid upbeat U.S. economic data.

The benchmark yield moved the least in either direction in eight weeks, after rising by the most in a year one week ago. Yields have climbed from all-time lows touched earlier this month as a flurry of above-forecast data has sent Citigroup Inc.’s U.S. Economic Surprise Index to the highest since December 2014. That’s caused traders to boost wagers on a Federal Reserve interest-rate increase this year to the highest in about a month.