Daniel Kruger

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.

The Federal Reserve’s attempt to lift inflationto a level that would reflect a healthier U.S. economy is starting to take hold in the bond market

As the U.S. bond market suffers its worst rout since 2009, the gauge that historically signals more pain for fixed-income investors is instead suggesting yields are near their peak.

The gap between U.S. bank deposits and loans is growing at the fastest pace in two years, providing lenders with more funds to buy bonds and temper the biggest sell-off in Treasuries since 2010.