Economics

Treasury Rout Sends Yields to 10-Month High as Volatility Surges

  • Loomis Sayles’s Eagan sees ‘paradigm shift’ in bond market
  • BlackRock says investors should favor inflation-protected debt

Parker: 10-Year Yield Jump a Significant Move Last Week

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The global bond rout intensified Monday, with a gauge of Treasuries volatility surging to the highest since February, on expectations that President-elect Donald Trump will increase government spending to boost economic growth and stoke inflation.

The yield on the benchmark 10-year note climbed to 2.26 percent, the highest closing level since Jan. 1. The move marks a quick reversal -- just four months ago, it touched a record-low 1.318 percent, surprising analysts who back in January predicted it would end the year at 2.75 percent.