Treasury’s Summer Rally Not This Year as Traders See Bottleneck

July 6 (Bloomberg) -- One of the best bets in the $6.45 trillion Treasury market may no longer be such a sure thing.

Yields on benchmark 10-year U.S. notes fell from June through September in 15 of the last 20 years by an average of 35 basis points as the U.S. wrapped up the bulk of its debt auctions and investors reinvested the proceeds from interest and coupon payments. The last time yields failed to decline was in 2005, when they rose 34 basis points as the Federal Reserve boosted interest rates. (more)