Selloff in Long-Maturity Treasuries Squeezes Recession Wagers
- Thirty-year bonds are heading for their worst week this year
- Nomura says it’s nervous about buying long end of yield curve
The US Treasury building in Washington, DC.
Photographer: Nathan Howard/BloombergThis article is for subscribers only.
The Treasury yield curve has steepened this week, but the shift is unnerving investors as it comes through a painful selloff in longer bonds rather than the rally in shorter debt most expected.
Yields on 30-year Treasuries climbed above their five-year peers Thursday for the first time since June as long bonds headed for their worst week since December. The slide in longer debt came just as client surveys showed bullish bets were close to the highest in more than a decade in anticipation Federal Reserve policy tightening will lead to a recession.