A resilient US economy and deepening geopolitical tensions around the world are making asset managers rethink their expectations for a weaker dollar.

Treasuries extended their slump in New York, driving the yield on the benchmark 10-year note up by the most in more than three weeks, as renewed inflation concerns and economic data supported expectations for multiple Federal Reserve rate hikes in coming months.

U.S. government bonds dropped across the curve, with the two-year yield up two basis points to 2.47% as of 11:28 a.m. in New York. The 10-year yield rose two basis points to 2.85%, while a long-maturity Treasury ETF suffered a nearly 30% decline from a peak in August 2020 -- a record drawdown.