US bonds started the day in sharp decline amid a fierce selloff in Japanese government debt, which spilled over into global markets. Treasuries then ticked even lower after a Danish pension fund said it will sell its holdings of US government debt, before reversing some losses. The US 30-year yield rose more than 10 basis points (bps) to nearly 4.95%, the highest level since Sept 3. Still, the spike in Treasury yields is sending the administration a message it’s unlikely to ignore, McIntyre said. The US Treasury selloff reflects “a combination of factors,” said Ian Lyngen, head of US rates strategy at BMO.
