"Investors still have faith that the dollar itself, regardless of the state of the actual government, will continue to be the global currency of choice and keep value in a fraught political situation."

Though the how, why, and when remain murky, bond traders expect currently inverted Treasury yield curves to soon normalize.

After a run of solid economic data, the rise in 10-year Treasuries' yield, to 5%, makes them attractive to embattled investors.

Quantitative tightening is "an underappreciated risk" that might keep bond yields higher for longer. Auctions of 10- and 30-year Treasuries were poorly received this month, and supply will keep increasing, thanks to the widening budget deficit.

Yields on 10-year and 30-year Treasuries reached their highest since 2007, extending yield curve steepening which has been a key dynamic of the past month's abrupt selloff.

Elevated rate fears drive continued bond-market selloff.

Yields on 10-year Treasuries could exceed 4% in order to win over investors.

The impending barrage of T-bills is a precursor to a glut of longer-term debt issues, which might result in a "demand vacuum" for longer-maturity bonds that pushes yields higher and tightens financial conditions.