Bond Market Sees Once Easy Yield-Curve Bets Upended by Fed Path
- Investors profited from wagers yield curve would invert
- Doubts build on whether the trade has largely run its course
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Bond traders are losing a sure thing.
As Treasuries were hammered by record losses and whipsawed by volatility this year, there was one wager that traders could count on: that short-term yields would surge until they pushed above long-term ones on speculation that the Federal Reserve’s rate hikes could drive the economy into a recession.