An unwind of short bets against Treasury debt as well as growing concerns about the recovery of the U.S labor market and the spread of the Delta variant of the coronavirus has pushed down longer-dated U.S. government bond yields. The benchmark 10-year yield hit 1.296% on Wednesday and the 30-year yield fell to 1.918%, the lowest since February for both.
"The view for a while there in February and March seemed very clear," said Gregory Whiteley, U.S. government securities portfolio manager at DoubleLine. "Everyone was getting on board, everyone was getting short, every strategist you heard from was calling for higher rates by the end of the year. But Whiteley said bond yields have "gone too far to the downside now, so we've overshot in the other direction."