Bond Market Blues: US Treasury Yields Surge, Shaking Up Global Markets

A sudden sell-off in US Treasury bonds sparks volatility, hinting at broader market shifts.
Bond Market Blues: US Treasury Yields Surge, Shaking Up Global Markets

A significant downturn in the US Treasury market is raising eyebrows. US government bonds have experienced a two-day decline, with weak demand for a $5.8 billion short-term debt auction contributing to the downward pressure. Moreover, aggressive withdrawals from this traditionally safe haven by hedge funds are amplifying the sell-off.

The yield on the benchmark 10-year US Treasury note jumped sharply on Tuesday, climbing 11 basis points to reach 4.3%. This represents a rise of nearly 30 basis points over two days. This level of fluctuation is quite notable given that such assets typically exhibit relatively low volatility.



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