# Rising Treasury yields are forcing investors to sell government debt.

*business · news · 2026-05-22 · The Economic Times*

## Key points

- Recent convexity hedging activity by MBS investors has significantly amplified Treasury market volatility.
- CME data revealed exceptionally large block trades in five- and 10-year Treasury futures linked to MBS hedging.
- The Fed's QT policy shifts mortgage-related convexity risk from its balance sheet to private investors.
- Higher-coupon mortgages exceeding $2 trillion have increased mortgage market sensitivity to rate swings.
- Convexity hedging flows are now a larger driver of Treasury volatility than in past years.

**Companies:** Dell Technologies, HP, NetApp, Skyworks Solutions
**Countries:** United States

[Read the full story on The Economic Times](https://economictimes.indiatimes.com/markets/us-stocks/news/us-stock-market-treasury-yield-surge-sparks-mortgage-hedging-frenzy-deepens-bond-selloff/articleshow/131256451.cms)

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