Traders Flip to Betting Against Treasuries as War Drags On

Bond traders have shifted to wagering on losses in Treasuries, aggressively dumping bullish futures positions after the Mideast conflict triggered a surge in oil prices and sparked inflationary worries.

The swing in sentiment, following a big February rally in US government debt, came last week as yields soared along with crude in response to the broadening hostilities. Traders have also pared the amount of Federal Reserve policy easing they expect this year ahead of Wednesday data that’s projected to show inflation remained well above the central bank’s target even before the fighting erupted.