Eshe Nelson

"There is a de-anchoring of inflation expectations occurring, and this affects how risk-takers are operating in any market that is sensitive to inflation expectations," says a leading market watcher.

Analysis: Every time the Fed has raised rates over the past four decades, betting that longer-term Treasuries would outperform, short-term debt has proved to be a big winner.

Goldman Sachs Asset Management and Pacific Investment Management say Treasuries are poised to fall as the Federal Reserve approaches the end of its bond- buying stimulus program.

Treasury 30-year bonds have returned more than double that of U.S. stocks this year before the government’s monthly sale of its longest maturity today.