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Bond Dealers Whipsawed on Treasury Bets

Wall Street's bearish stance on U.S. Treasuries is not paying off.

By Lisa Abramowicz and Daniel Kruger, Bloomberg | Updated on April 21, 2014

Betting against U.S. government debt this year is turning out to be a fool’s errand. Just ask Wall Street’s biggest bond dealers.

While the losses that their economists predicted have yet to materialize, JPMorgan Chase & Co., Citigroup Inc., and the 20 other firms that trade with the Federal Reserve began wagering on a Treasuries selloff last month for the first time since 2011. The strategy was upended as Fed Chair Janet Yellen signaled she wasn’t in a rush to lift interest rates, two weeks after suggesting the opposite at the bank’s March 19 meeting.

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