Peak in bond yields that appeared close has now vanished from sight

For the moment, investors remain convinced that the Fed is on a course that ultimately will bring the economy to its knees

All bets appear to be off on how high yields can rise in the world’s biggest bond market.
 

While only the two-year reached a new multiyear high this week -- on Friday after October labor market data were stronger than expected -- more bloodletting seems inevitable in the Treasury market. 

Federal Reserve Chair Jerome Powell reiterated on Wednesday, after the central bank’s sixth policy rate increase this year, to a range of 3.75% to 4%, that there’s no end in sight as long as inflation stays elevated. Swaps traders responded by pricing in a peak rate higher than 5%. 

“The data needs