"Treasuries at Risk of Jumping to 5% Despite Recent Yield Fluctuations"

Vanguard warns that the Treasury market is approaching levels that could trigger a significant selloff, potentially pushing 10-year bond yields back to 5%. Ales Koutny, head of international rates at Vanguard, expressed concern that even a small move past the critical 4.75% level could lead to a wave of selling, driven by investors forced to limit losses. The recent jump in yields was compounded by persistently high inflation data, leading to negative sentiment in the Treasury market. Despite this, demand for new issuance remains strong, with a 20-year Treasury auction awarded at a yield below the when-issued yield.