Market participants cited an unscheduled purchase on Friday of A$3 billion (US$2.33 billion) of bonds by the Reserve Bank of Australia as evidence that central banks could and would react to curb the rise in bond yields if necessary. On Monday, the Australian central bank

Quandary No. 1: The prospect of a robust economic recovery in the second half, with or without a government stimulus, is leading to a selloff in U.S. Treasuries and other government bonds. As a result, yields are rising across the board (yields move inversely to