After ripping higher, U.S. Treasury yields could be set for a pullback, but it could be temporary and strategists expect rates to trade in a new, higher range this summer.
German bund yields are seen as the most dominant driver of Treasurys for now, while strategists say a heavy corporate issuance calendar is also fueling selling in Treasurys.
"I think we're closer to the highs of the year than not. I think we're having a rate adjustment.... I think we're going to go higher than 2.60, but I don't know if we're going much higher," said John Briggs, head of strategy at RBS.
Treasury yields followed bund yields higher Wednesday, and the U.S. 10-year hit a high of 2.49 percent, as its German counterpart traded above 1 percent. U.S. rates later came off their highs, and the Treasury Department auctioned $21 billion in 10-year notes at a yield of 2.461 percent, the highest at an auction since September.