Looks like somehow your first hop has been put down as the loopback address i.e. 127.0.0.1. Check the routing table on your host or the pc/laptop from where you are trying tracert from, and see if there is any entry for a default gateway put down as 127.0.0.1.
Also check your hosts file (if this is a windows os host) there might be an entry which might have the same thing i.e. set 127.0.0.1 as default gateway.
Check your network card settings for default gateway as well for the same thing.