Just When You Thought Bonds Might Calm Down a Bit...
Just When You Thought Bonds Might Calm Down a Bit...
Abstract
The overnight session was frustrating exercise in "position-squaring," which is a term we often use as a sort of generic, hifalutin way of saying "that's just the way the ball is bouncing" Today begins with 10yr yields up almost 9bps to new 11-year highs of 3.581 while 2yr yields are up only 3.3bps. A bigger-than-expected rate hike in Sweden wasn't necessarily a key consideration. But it didn't help. The nearness in Sweden was not necessarily a main consideration for global markets, but it didnโt help. In other news, a record-setting inflation report in Germany also kicked off selling pressure in EU bonds.