US Treasuries seen weakening in 2014, but rout unlikely


NEW YORK: Investors who bet heavily on Treasuries took a beating in 2013, and as the Fedwinds down its bond buying, they face the risk of a second straight losing year, something that has not happened in four decades.

Portfolio managers at large U.S. bond funds are, however, a bit optimistic. They say the most violent adjustment in the bond market has already happened, even though bond yields should rise a little more in 2014 as the Federal Reserve reduces its massive stimulus program.

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