The weakness in Treasuries reflects growing concerns that the fixed-income market is vulnerable to a tightening monetary policy, which many anticipate the Fed will begin at mid-December – the futures market anticipates a 72% chance the Fed will hike rates by its December 15-16 meeting.
“People are a little bit nervous,” Roger Bridges, chief global strategist for interest rates and currencies at Nikko Asset Management Australia, told Bloomberg. “I could see rates going up as we go into December, but I don’t really see a massive selloff.”
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Max Chen contributed to this article.