Yuri Gripas/Reuters
Soaring yields signal investors expect the Fed to lift interest rates well before past estimates.
Fed officials will likely need to address the bond-market rout to avoid disruption to the economic recovery.
The Treasury market has made it clear: the
Federal Reserve
is a downer.
Optimism toward the US economic recovery flourished over the past week. Daily COVID-19 case counts fell further from their January peak. Vaccinations continued across the country, hinting the pandemic could fade in just a few months. Economic data beat expectations. And Democrats pushed forward with President Joe Biden's $1.9 trillion stimulus proposal, aiming to accelerate the rebound even more.