Bond Rout Reignites as U.S. Stimulus Bets Overshadow Quarter-End
- Five-year U.S. bond yields rise to highest level in 13 months
- Treasury selling ‘isn’t done yet,’ Mediolanum’s Diebel says
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The U.S. economic reopening trade is back in full force, sending 10-year Treasury yields up to 1.77% for the first time since January 2020.
With the Biden administration rolling out plans to accelerate the vaccine campaign and rebuild U.S. infrastructure, investors are doubling down on bets on the U.S. economic recovery. Yields on bonds climbed to fresh highs on Tuesday and the dollar strengthened.