US Bonds Turn Into a Wall Street Trap as the Fed Triggers a Treasury Sell-Off
Investors seeking safety from volatility in artificial intelligence stocks have suffered sharp losses in US government bonds as persistent inflation and hawkish Federal Reserve signals force markets to rethink the outlook for interest rates. With the two-year Treasury yield recording its biggest daily jump in 19 months and the 10-year yield briefly exceeding 5%, Wall Street faces a new threat: stocks and bonds falling together.