When euphoria may turn to despair

New York

IT'S getting harder and harder to quarantine the sell-off in Treasuries from equities and corporate bonds.

The benchmark 10-year US yield cracked 2.7 per cent on Monday, rising to a point many forecasters weren't expecting until the final months of 2018. For over a year, range-bound Treasuries helped keep financial markets in a Goldilocks state, with interest rates slowly rising due to favourable forces like stronger global growth and the Federal Reserve spearheading a gradual move away from crisis-era monetary policy.