Sizing Up the Bond Market’s Signals

Longer-term yields stall, curve flattens ahead of corporate earnings reports

Investors will take a fresh look at U.S. government bond yields this week, after a tame inflation report and concerns about trade frictions helped push the yield on the benchmark 10-year Treasury note to a fifth consecutive weekly decline.

Yet even as jittery global markets spur demand for the relative safety of government debt, investors see the potential for yields to reverse course yet again. Speculative bets against the 10-year note recently hit a record, highlighting the potential for a shift that many worry could spur...