Bond investors are signaling that they’re not quite convinced the worst is over after the most violent rout for Treasuries in 15 years.
For one thing, they pulled $10.7 billion from U.S. bond funds in the two weeks after Donald Trump’s victory, the biggest exodus since 2013’s “taper tantrum.” They also delivered a mixed verdict as the government sold $126 billion of notes and bonds following the election: The seven-year sale required the steepest selloff in more than a week to lure buyers, while in other maturities primary dealers were stuck with an unusually large share as demand plunged.
