“The Treasury market freaked everyone out this week when yields on longer-term debt shot higher even as stocks were being bludgeoned and the dollar fell. Naturally, traders are wondering why,” the Wall Street Journal reports.
“The immediate suspects include somewhat plausible ideas revolving around complex trading strategies employed by hedge funds to conspiracy theories focused on nefarious dealings by foreign governments.
”“But the answer might be far simpler: U.S. government debt is doing badly because, well, investors don’t want to buy it.”