Bond investors are warning that the selloff in US Treasuries may have further to run, raising the risk that yields move even higher. The concern centers on uncertainty around Federal Reserve Chairman Kevin Warsh and how policymakers may respond as the economic backdrop shifts.
According to the report, money managers including Brandywine Global Investment Management and Wellington Management see growing danger in a market that lacks clear signals from the Fed. Without a better sense of how officials will react, traders say they are being forced to price bonds with limited visibility.
That uncertainty matters because Treasuries are highly sensitive to expectations for interest rates, inflation and the broader policy path. When investors cannot confidently judge the Fed’s next move, volatility can increase and bond prices can come under renewed pressure, pushing yields upward.
For now, the main takeaway from bond managers is that policy ambiguity itself has become a market risk. If the Fed does not provide clearer guidance, concerns about a deeper Treasury rout and a further rise in yields are likely to stay in focus.
