New Delhi, Oct. 6 -- The Treasury market can't catch a break.

The battered U.S. government bond market saw a textbook safe haven trade play out this week: A mini bond crisis in France, reports of Iran war escalating on Thursday, and the release of weak labor data on Friday all pulled down 10-year yields. By Friday morning, the yield on benchmark 10-year note was down 0.13 percentage point from multi-decade high reached on Wednesday. The fall coincided with declining expectations of Federal Reserve rate hikes. (Lower yields mean higher bond prices.)

But the relief was short-lived. The optimism evaporated by Friday afternoon, dragging the bond market right back into the fire.

The 10-year yield has now risen for five straight weeks, for t...