The news:
US bond markets showed signs of exhaustion after their biggest weekly rally since August, while credit markets stalled as Treasuries weakened in a volatile session on Monday with yields across all maturities briefly higher by at least 15 basis points.
The numbers: Yields on 30-year bonds fell to 4.32%, rose to 4.62% and landed at
around 4.60% in late afternoon.
Yields across all maturities were briefly higher by at least 15 basis points during Monday’s session.
After falling below 3.9% in overnight trading, 10-year Treasury yields reversed course and climbed above 4.15%.
Traders’ bets on how much the Federal Reserve will cut rates this year fluctuated between three and five quarter-point cuts. Four cuts are now reflected in overnight interest-rate swaps, with the first fully priced in for June.
Meanwhile, credit spreads have widened sharply since President Donald Trump imposed sweeping tariffs, reaching the widest levels…
