While bearish wagers have been growing, the steep rise in yields since mid-September may mean that strong data will hurt the market less than weak data will help it, some investors and strategists say.
Yields near 5% – a threshold the 20-year bond crossed this week for the first time since 2023 – also may overestimate the risk of higher inflation under President-elect Donald Trump, who takes office January 21. Solid demand for Wednesday’s auction of 30-year bonds offering the highest yield in more than a decade suggested investors see value in the market.
“We’ve seen a pretty decent selloff in Treasuries, with it being basically a straight line higher in yields since early December,” said Subadra Rajappa, head of US rates strategy at Societe Generale. “It seems time for the market to take a bit of a breather between now and the…
