Treasurys

It all threatens to add a fresh twist for Treasury investors, who are already grappling with haywire moves and near double-digit losses with few precedents in the modern trading era.

A consensus has formed that the Federal Reserve waited too long to start tightening money. Fed watchers are still disagreeing about another question: Is the central bank tightening too much and too fast now?

US Treasuries extended losses and stock futures remained down as investors considered how a better-than-expected US jobs report might impact the pace of Federal Reserve policy tightening.

Investors are on edge over whether the US central bank’s tighter policies will induce a recession. A chorus of Fed officials has fallen behind calls to keep hiking to counter price pressures.

Concerns that central-bank rate hikes may induce a recession are keeping investors guessing about the outlook for the economy as rising food and energy costs squeeze consumers, and volatility has picked up.

Yields have jumped so much this year, roughly doubling those on 10-year Treasuries, that it recalls past buying opportunities that paid off when the tide turned.

The yield jumped as much as three basis points to 3.11%, extending an advance that has seen the rate more than double this year.

Japanese institutional managers -- known for their legendary U.S. debt buying sprees in recent decades -- are now fueling the great bond selloff just as the Federal Reserve pares its $9 trillion balance sheet.

The moves come after Powell struck a hawkish tone on Monday, prompting traders to rapidly ratchet up estimates for how aggressively the Fed will tighten monetary policy this year.

The repricing comes as Federal Reserve Governor Michelle Bowman suggested a hike of that magnitude could be on the table if inflation readings come in too high.