Some investors are betting on an end to the bond market’s pain after concerns around the Federal Reserve’s rate hikes sparked a selloff that sent the 10-year Treasury yield to a seven-year high in November.
But as yields have stepped back from those highs, some market participants say the U.S. economic expansion will start to stutter as the stimulus from the tax cuts begins to fade and uncertainty from trade tensions hampers further business spending. That could mean the yield on the benchmark 10-year note TMUBMUSD10Y, -0.34% may have peaked when it hit 3.26% last month. The yield has since retreated to 2.91%. Bond prices move in the opposite direction of yields.
