The 30-year bond yields rose above the 200-day of 2.849% Monday and ended at 2.906% Tuesday. After breaking the long-term resistance, the yield could rise as high as 3%, Tyler Tucci, a strategist with RBS Securities in Stamford, warned.
Looking ahead, traders will be watching for the U.S. jobs report on Friday, which could potentially influence Federal Reserve policymakers cogitating on its near-zero interest rate policy.
Some traders are already shifting into Treasury Inflation-Protected Securities as a hedge against rising consumer prices. For instance, Pfeffer said he acquired some TIPS exposure through iShares TIPS Bond ETF (NYSEArca: TIP). [Big Bets Made on big TIPS ETF]
iShares 20+ Year Treasury Bond ETF
For more information on Treasuries, visit our Treasury bonds category.
Max Chen contributed to this article.