U.S. sees highest bond volatility since mid-Oct.

Traders pulling out of bets that interest rates will hold at historically low levels have sent the yield on the benchmark 10-year Treasury bond soaring. A rout in fixed-income securities that started in Europe last week has spread to the U.S., with normalized volatility on three-month options for 10-year U.S. interest-rate swaps jumping as much as 7% on Tuesday.