Traders Who Rushed to Safety of Bonds Get Rattled in Reversal

Traders Who Rushed to Safety of Bonds Get Rattled in Reversal A recent influx of bullish positioning across the US bond market just got smacked, as comments from a pair of Federal Reserve officials and fresh evidence of sticky inflation increased the odds of interest-rate hikes, sending Treasuries into a tailspin. Tuesday’s selloff rippled throughout the Treasury curve, with traders pricing in a more aggressive Fed tightening path after Governor Christopher Waller said he supported a rate increase and that he’d favor a half-point hike if inflation continued to accelerate. A hotter-than-expected consumer price report added fuel to the shift, as did further hawkish comments from Dallas Fed President Lori Logan.