Barclays Warns: The Selloff in Treasurys Isn’t Over Yet

The U.S. bond market faces alarming instability as Treasury yields soar to their highest since 2007 and 2011. Barclays warns of an ongoing selloff, implying that the era of beneficial low rates is ending. Factors such as an assertive U.S. economy, upcoming Federal Reserve rate hikes, and inflation-adjusted yields have intensified concerns. Over a brief six-day period, 10- and 30-year Treasury yields have shockingly surged, culminating in negative returns for this year. This bleak scenario is severely dampening demand across the fixed income sector, and apprehensions about substantial future selloffs loom large.