Alexandra Scaggs

Strategists across Wall Street have been paring back 2016 calls on benchmark Treasury yields, as expectations for global economic growth decline and central banks in Europe and Asia introduce additional policy easing.

"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.

Investors dumped ETFs that invest in bonds ahead of yesterday's Fed statement on concern officials would get closer to raising interest rates.