Week InReview; April 19, 2024

The ongoing selloff in bonds.

Wall Street hit by hawkish bets. Photo: Michael Nagle | Bloomberg

Danger zone | The world's biggest bond market extended this month's selloff after solid economic readings and hawkish comments from Federal Reserve officials reinforced speculation that interest rates will be higher for longer. Treasuries fell across the curve, pushing 10-year yields up to around 4.63%. To Vanguard, the market is nearing levels that risk triggering a large selloff. “We are in a danger zone right now,” Ales Koutny, Vanguard's head of international rates, said in an interview. Even a small move higher — past the critical 4.75% level — could force investors to abandon their bets on a rally, giving way to a wave of selling that could push yields toward the highs of 2007, he said. US Equities meanwhile slid for a fifth straight session on Thursday.

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