Treasuries most sensitive to Fed set for biggest loss since 2019

The Treasury market has seen unusually large price swings as liquidity dried up

US debt that’s the most responsive to changes in Federal Reserve policy is leading the fallout from this week’s shock inflation print. Five-year Treasury yields jumped 20 basis points this week to 1.26 per cent as of 4.36 pm (IST), set for the biggest surge in two years, as traders consider the potential for the Fed to raise interest rates earlier than markets currently anticipate.
 
Yields on similar-maturity debt by Italy led euro-area moves, climbing as much as five basis points before pulling back. Global bonds have had a wild month, with yields gyrating as investors reassessed their expectations