Bond rally at risk as bank stress diminishes

The sharpest rally for U.S. government debt in years has left investors and analysts warning that bond markets are vulnerable to a reversal.

Prices for Treasurys leapt after turmoil in the financial sector drove investors to lower their expectations for how high the Federal Reserve would raise interest rates. Now, some worry that with banks stabilizing, a resumption of the Fed’s inflation-fighting efforts could spark declines as rapid as th