Treasuries Rally as Biggest Global Bond Rout Since 2003 Pauses

  • Technical indicator shows notes were most oversold in 26 years
  • Daiwa SB, Mirae say it’s not yet time to buy Treasuries

Is the Bond Rout a Rational Response to Trump?

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Treasuries rose as investors questioned how much extra spending President-elect Donald Trump will be able to implement, halting a selloff that put global bonds on track for their worst month in 13 years.

U.S. 30-year yields surged past 3 percent Monday, fueling speculation the level is high enough to compensate investors for a pickup in inflation expectations and forecasts for the Federal Reserve to raise interest rates next month. A technical indicator showed 10-year Treasuries were the most oversold since 1990.