Treasury Selloff Sends Yields Racing Past Limits of Bullish Era
- 10-year yield breaches decades-long downward trend line
- Bond rout deepens as market gears up for aggressive Fed hikes
The Marriner S. Eccles Federal Reserve building in Washington, D.C.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
The deepening bond-market selloff has driven Treasury yields past a threshold that could signal the end of a decades-long bull run.
With the Federal Reserve poised for an aggressive cycle of interest-rate hikes, 10-year yields have surged to nearly 2.5%, the highest since May 2019 and up more than a full-percentage point since early December. That’s a far faster and steeper increase than before other monetary-policy tightening cycles, and it has already driven the benchmark yield past a technical trend line that has effectively served as a ceiling since the late 1980s.