State Street SPDR Bloomberg 1-3 Month T-Bill ETF

BIL

Valor de mercado US$ 50,9 bi

Bonds are paying the best yields in years and still dragging portfolios into the red, leaving investors scrambling for a defensive asset that actually defends. A growing group of Wall Street managers thinks the answer involves shorting Treasuries outright.

U.S. bond yields are rising, providing an increasingly attractive alternative to pricey stocks. Trump's unorthodox policy may be causing this trend to accelerate.

US Treasury yields may ‌have further room to rise, with the Federal Reserve likely ​to deliver one or ​two more rate increases before ⁠the current tightening cycle ends, ​Dan Ivascyn, chief investment officer ​at the world's largest bond manager, told Reuters on Tuesday.

The global competition for capital remains the key dynamic keeping yields elevated. Notably, all of the September increase in 10-year Treasury yields came from real yields, as implied by the TIPS market.

US Treasuries resumed their retreat, lifting the 30-year yield back to its highest since 2002 as climbing oil prices raised concern about faster inflation and more central bank interest-rate increases. Vishal Khanduja, Head of Broad Markets Fixed Income at Morgan Stanley Investment Management, discusses credit spreads and whether or not yields will soon peak.

Japan, Europe, and the U.S. were feeling the fallout from France, where yields on its benchmark 10-year note climbed closer to 5%, the highest since 2002.

Asian market opened the week firmer on Monday as a sharp slowdown in US hiring pushed investors towards a Federal Reserve pause this month, giving rate-sensitive technology stocks room to rebound. Japan led the advance, with the Nikkei 225 jumping 2.5% above 70,000 to a three-month high, while Taiwan's Taiex gained about 2.6%.

Yesterday's cooler-than-expected PCE print finally gave the bond market a breather, pulling Treasury yields down from their brief 5.3% peak. For financial advisors, this recent whiplash brings fixed income duration conversations back to center stage — specifically, balancing the hunt for long-term yield with the safety of ultra-short cash alternatives.

Rolling coverage of the latest economic and financial news

US Treasuries rebounded from the global bond selloff that raced through European markets on Thursday, pulling 10-year yields back from a 24-year high. Bloomberg's Ira Jersey joins to discuss.