Mizuho Securities indicates that the sell-off in U.S. Treasuries may decelerate as elevated yields draw in investor demand.

"Expectations of Federal Reserve rate hikes are increasingly being factored into the short end of the yield curve, which has helped push up the 10-year yield," said Hidehiro Joke, senior bond strategist at Mizuho Securities in Tokyo.

"It seems unlikely that the 10-year yield will advance further toward 5.25% or 5.5%, as the carry return should be sufficient to offset a slight increase in funding costs."

"Inflation is expected to moderate as the impact of tariffs diminishes. I doubt the Fed will sustain elevated interest rates without cutting them to the extent that the market currently anticipates."