"Bonds Face Test as Yields Rise and Rate-Cut Hopes Fade"

The sell-off in the U.S. government bond market is accelerating as a strong economy diminishes expectations for imminent interest rate cuts from the Federal Reserve. Investors who had bet on rising Treasury prices as the Fed cut borrowing costs are now facing losses, with yields on the benchmark 10-year Treasury reaching their highest level since November. While some anticipate further losses in the bond market and expect yields to rise, others believe the selloff will not last, citing the Fed's projection of rate cuts and the eventual decline in interest rates.