(Bloomberg) — A selloff in US Treasuries showed few signs of abating on Wednesday, with securities falling for a third day amid a broad repricing of expectations for interest rate cuts by the Federal Reserve.
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Yields advanced across maturities, with the benchmark 10-year rate reaching 4.26%, the highest since July. A rout in US stocks added to the pressure with investors now demanding the highest premium to hold longer-dated government debt in almost a year.
“People are worried about the bond market now,” said Suhail Shaikh, chief investment officer at Fulcrum Asset Management, which manages $7.7 billion. “The Fed had been priced too aggressively in markets in terms of rate cuts relative to what the economy really needed.”
Signs of a resilient US economy and stubbornly high inflation have also fueled the move. On Wednesday, the Fed’s Beige Book survey of regional business contacts showed activity was…
