Treasury Yields Surge in Worst Selloff Since March 2020 Crash
- US 10-year climbs more than 20 basis points to 2010 levels
- Weak demand for two-year sale triggers fresh selling
The US Treasury building in Washington, D.C.
Photographer: Joshua Roberts/BloombergThis article is for subscribers only.
US Treasury yields surged on Monday, with poor demand for a two-year note auction triggering renewed selling that propelled key benchmarks higher by more than 20 basis points -- and sent the 10-year rate up by the most since the March 2020 Covid crash.
US inflation stuck near a four-decade high and a hawkish Federal Reserve that now expects to push policy rates to at least 4.6% in 2023 are driving bearish market sentiment, with poor liquidity exacerbating the moves. A renewed surge in UK gilt yields, with key benchmarks rising around 40 to 50 basis points, also added pressure to the global bond market.