Treasuries' Day of Reckoning Shows Selloff Will Be a Grind
- Ten-year yield hits highest since 2011, breaking 3-week range
- ‘Real concern’ about increased debt supply as Fed raises rates
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The Treasury market’s big bang came on a day that few traders could have seen coming. And that’s bad news for bond bulls in the days, weeks, and perhaps even months ahead.
In the grand scheme of things, nothing much happened to cause the benchmark 10-year U.S. yield to break through both its 2018 and 2014 highs in the span of minutes. Sure, Australia priced long bonds and investment-grade debt issuance showed signs of picking up. U.S. retail sales rose broadly last month, though some segments increased less than forecast.