Another Yield High as US 10-Year Jumps Above Key 4.5% Level in Post-Fed Bond Rout

  • Bloomberg Treasury benchmark has dropped 1.2% this year
  • Bill Gross says bond investors face third year of losses
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Treasury 10-year yields rose above 4.5% for the first time since 2007 as a more hawkish Federal Reserve adds to concern the bonds face a toxic mix of large US fiscal deficits and persistent inflation.

US government debt is headed for a third year of losses as bets on a rapid Fed pivot from aggressive interest rate hikes evaporate again after the central bank on Wednesday raised its projectionsBloomberg Terminal for future borrowing costs.