(Bloomberg) — A gauge of U.S. Treasuries is hurtling toward the biggest quarterly loss on record, as traders bet on hefty Federal Reserve rate increases and the possibility of a cease-fire between Russia and Ukraine.
The ICE BofA US Treasury Index has fallen more than 6% so far this year, with benchmark 10-year yields climbing Tuesday toward the highest in almost three years. Yields reached the highest levels of the day after Russia, following a round of talks with Ukraine, said it would sharply cut military operations near Kyiv and Chernihiv. The potential for a cease-fire eroded demand for haven assets also including the dollar and gold, and oil fell sharply.
