The Bond Market’s Bears Are on a Tear. Now the Fed Has Its Say
- Ten-year Treasury yield posts biggest weekly jump since 2019
- Investors expect the Fed to prevent an unruly climb in rates
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The pandemic’s grip on U.S. Treasuries has loosened, allowing yields to take flight. The Federal Reserve’s next move will show just how far they can soar.
The world’s haven market is coming off its roughest week since September on signs the economy is fighting its way back to health. The 10-year yield broke free of the quarter-point range it’s plied for weeks, and approached 1% on Friday’s data showing an unexpected rebound in U.S. employment. With long maturities absorbing the brunt of the losses, the yield curve is the steepest in more than three years.