The U.S. bond-market selloff resumed Monday, driving 10-year yields to a 16-year high, as the persistently resilient economy has investors positioning for interest rates to remain elevated even after the Federal Reserve winds up its hikes.

The selling pressure weighed on typical Treasuries as well as those that provide extra payouts to cover inflation, signaling that bondholders are bracing for the risk that monetary policy will remain tight as the central bank guards against a re-acceleration in inflation.

The yield on 10-year inflation-protected Treasuries on Monday pushed over 2 percent for the first time since 2009, extending its ascent from year-to-date lows near 1 percent. Not long after, the yield on 10-year Treasuries without that protection surpassed October's peak, climbing nearly 10 basis points (bps), to as much as 4.35 percent, a level last seen in late 2007, before slightly paring the gain.

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