Bonds Slump Globally as Traders Rethink Fed’s Rate Cut Path
- US 10-year yields rise above 4.20% for first time since July
- Inflation and fiscal fears build ahead of next month’s vote
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Bonds extended losses as investors mulled the prospect of slower US interest-rate cuts, a trend that risks upending debt positions everywhere.
The selloff pushed yields on two-year Treasuries higher by as much as two basis points on Tuesday, while 10-year yields briefly topped 4.2% for the first time since July. The rate on 10-year German securities touched the highest level since early September. The rout also spread to Asia, where the yield on Australian benchmark debt surged as much as 16 basis points. US yields subsequently retreated to little-changed levels.