Citigroup strategist Jim McCormick said bond traders are focusing on 5.5% as the
next key level for 30-year US Treasury yields after they climbed to 5.16%, near
highs since 2007. He said inflation and stronger US growth are weakening
traditional “buy the dip” demand for Treasuries, while Barclays and BNP Paribas
warned the selloff may continue amid elevated energy-driven inflation
expectations. McCormick added that rising long-term yields are reshaping Fed
rate outlooks and creating instability for equities and credit markets.
