Traders Lift Bets on a Fed Hike This Year as Yields Surge

US Treasuries sank and bond traders increased their bets on a Federal Reserve interest-rate hike by October to 50% as concern that a protracted war in the Middle East could stoke global inflation. A selloff in the $31 trillion market on Friday sent yields higher by 10 to 15 basis points across maturities after the Wall Street Journal reported that the US is sending three warships and more Marines to the Middle East. Two-year notes, among the most sensitive to monetary policy, led the move. Five-year yield ...