Treasuries slide on bets on rate hikes

“Inflation has become self-sustaining, and bringing it back under control will be harder and more painful than the central bank hopes,” Sonal Desai, chief investment officer for fixed income at Franklin Templeton, wrote in a research note.

NEW YORK: Treasuries extended their slump in New York, driving the yield on the benchmark 10-year note up by the most in more than three weeks, as renewed inflation concerns supported expectations for multiple Federal Reserve (Fed) rate hikes in coming months.

Intermediate-dated benchmarks led the slump in Treasuries with five, seven and 10-year yields rising by about 12 basis points (bps) as United States bond trading caught up with other financial markets after being shut Monday for the Memorial Day holiday.