Why do US Rates Suddenly Care About The UK?
Abstract
Why do US Rates Suddenly Care About The UK? If you're just getting caught up, UK fiscal policy is probably at the center of the last few days of rate volatility. UK market fallout added to US rate drama today, but why is this suddenly a thing? First off, there is almost always some spillover from EU rate momentum to the US. The proportion of the past few days is actually much smaller than normal. The takeaway is that "Higher" remains the path of least resistance for rates until further notice. 10yr up 8bps at 3.767 and MBS down just over half a point. Sharp losses after Bank of England offers no emergency action on rates. 10yr up 17bps to 3.85 and MBS are down a full point. Sideways at ultra-week levels with MBS down 1.5pts and 10yr yields up 19bps at 3.878%..
