All bets appear to be off on how high yields can rise in the world’s biggest bond market.
Wall Street money managers looking to pile back into Treasuries after months of losses will have to contend with a Federal Reserve that stands ready to raise the stakes every step of the way.
The specter of US interest rates at 4% or even higher is bringing into sharper focus the question of when and how investors should really get back into bonds after Treasury markets suffered one of their worst beatings in decades.
Investors who might be looking for the world’s biggest bond market to rally back soon from its worst losses in decades appear doomed to disappointment.
The spreading global bond rout is spurring a Wall Street debate on whether investors will demand to be paid for lending to the American government like they used to.
Bond traders suspect the Federal Reserve will quickly discover it’s being too ambitious with its newly hawkish stance.