Anchalee Worrachate

The firm is recommending investors continue to buy five-year U.S. sovereign debt, even as the securities head for their worst month since February of last year.

Janet Yellen’s emphasis on a gradual path to higher U.S. interest rates is being vindicated by a decline in the inflation outlook among traders.

Treasuries are the world’s worst- performing bonds this quarter amid concern investors are underestimating risk the Federal Reserve will raise borrowing costs next year.

The boom in fixed-income derivatives trading is exposing a hidden risk in debt markets around the world: the inability of investors to buy and sell bonds.

Treasury yields were in the tightest range in nearly seven years as traders weighed prospects for Federal Reserve bond tapering against concern tension between the U.S. and Russia over Crimea will increase.

Treasuries fell for a fifth day, reversing earlier gains, before the U.S. government sells $64 billion of notes and bonds this week.