Government bonds across the U.S. and Europe fell as the panic gripping global markets subsided.
Many economists predict the Fed will lower rates by a half-point in each of its next two meetings.
The reversal underscores the market's belief that caution reins at the Federal Reserve.
The Treasury kicks off $125 billion of sales this week. It will test the global bond rally.
The conflicts have replaced inflation as the top concern among investors.
Thursday was the worst day for the Bloomberg Treasury Index in more than six months.
Higher borrowing costs for longer mean financial conditions will tighten even without further action from policymakers.
Global bonds are down 3.5% in 2023 and yields worldwide are now at levels almost unthinkable at the start of the year.
Paul Brain said that he's readying his funds for an era of more entrenched price pressures.
Many closely-watched spreads in the Treasury market have already flipped below zero.
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