Why U.S. Bonds Are Bouncing Back Today -- WSJ

By Sam Goldfarb

Turmoil in the global bond market is taking a new twist Thursday, as investors start picking between winners and losers among the debt of different developed countries.

In recent trading, yields on French, Italian and Greek bonds were all sharply higher, while yields on German bonds and U.S. Treasurys were lower-indicating a flight to bonds seen as safer. (Bond yields fall when their prices rise.)

Traders said the moves were being exacerbated by investors, particularly hedge funds, being forced to unwind popular trades that amounted to bullish bets on France's bonds in particular.

In the U.S., investors have also grown somewhat more comfortable buying shorter-end Treasurys after this week's comments from New York Fed President John Williams and yesterday's PCE inflation data made a near-term interest rate hike seem less likely.

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(END) Dow Jones Newswires

October 01, 2026 13:15 ET (17:15 GMT)