Demand for protection against further increases in long-term U.S. government borrowing costs picked up after the Federal Reserve’s latest policy meeting.
Bond traders are paying the highest premiums since March to protect against further rises in long-dated Treasury yields after the Federal Reserve’s latest policy meeting. The move points to heightened concern that long-term U.S. government borrowing costs could continue climbing, a sign investors are seeking downside protection in rate-sensitive markets following the Fed decision.