Treasuries Closing on 2% Just a Start as Traders See More Misery

  • Matthews’ Kong sees 10-year benchmark U.S. yield hitting 2.5%
  • Breach of U.S. yields at 2% would be first since August 2019
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The selloff in the world’s biggest bond markets looks set to extend, which will push benchmark U.S. 10-year Treasury yields beyond 2% as expectations for aggressive rate hikes mount, according to investors.

Yields on 10-year Treasuries climbed to as high as 1.96% on Tuesday, the highest since November 2019. Australia’s benchmark yields soared 13 basis points, while the Japan equivalent approached a level that the central bank has indicated it will defend.