Large block sales in US Treasury futures intensified a sharp bond selloff Tuesday, sending long-end yields to their highest levels since 2007 as investors priced in rising inflation and higher interest rates. Roughly $15 billion equivalent of 10-year note futures changed hands during a volatile hour of trading. Archr LLP Founding Partner Alan Taylor described it as a “capitulation-type day in Treasuries,” driven by “multiple block sellers.” Markets now imply an 85% chance of a Fed rate hike by y

Large block sales in US Treasury futures intensified a sharp bond selloff Tuesday, sending long-end yields to their highest levels since 2007 as investors priced in rising inflation and higher interest rates. Roughly $15 billion equivalent of 10-year note futures changed hands during a volatile hour of trading. Archr LLP Founding Partner Alan Taylor described it as a “capitulation-type day in Treasuries,” driven by “multiple block sellers.” Markets now imply an 85% chance of a Fed rate hike by year-end, versus no hike expectations on May 1, while traders continued building large short positions in Treasury futures.