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Treasuries Whiplashed Like 2009 as Fed Hawks Unleash Uncertainty

  • War in Ukraine and China’s Covid lockdowns are hitting yields
  • US bond gauge is off to the worst start this year since 1973
Updated on

This is shaping up to be the most volatile year for Treasuries in over a decade, as uncertainty about the impact of aggressive Federal Reserve tightening whipsaws yields.

The yield on 10-year US notes has traded in a range of at least 10 basis points in 50 of 95 trading days so far in 2022. That puts it on track for an annual rate of more than 130 episodes, which would be the highest since 2009. Yields edged higher Thursday after tumbling overnight, reflecting the see-saw trend that’s gripping the world’s largest bond market.