Stymied Bond Bears See Spark for Higher Yields in Pivotal Week

  • Curve near flattest since August 2020 before key Fed meeting
  • 10-year yield seen rising to 1.69% at year-end, survey shows
Photographer: Stefani Reynolds/Bloomberg
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Bond bears, long frustrated by stubbornly low Treasury yields, are girding for a make-or-break week as the Federal Reserve is expected to start laying the groundwork for reducing stimulus.

The bond market enters this potentially pivotal stretch at a crossroads: 10-year yields are testing the top of their range since early July as traders anticipate that the Federal Open Market Committee will hint in its Sept. 22 decision at a plan to curb its bond buying.