Death of the Bond Bull—Violent or Velvet?

Traders work on the floor of the New York Stock Exchange on May 23 Photograph by Spencer Platt/Getty Images

With traders nervous that the Federal Reserve will scale back its debt-buying campaign en route to ending stimulative monetary policy, U.S. debt posted its steepest monthly loss since December 2009. Ten-year Treasury yields are above 2 percent, up from a record low of 1.38 percent last summer. Securities in the Bank of America Merrill Lynch Global Broad Market Index have fallen 1.5 percent in May, their worst showing in nine years.

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