US Treasury 10-year yields (%) 10-mins chart
It’s a volatile mess out there but the drop back down in yields in European morning trade so far is at least providing a light breather for broader markets. The dollar is seeing gains pared on the day with the euro and pound now sitting a little higher while S&P 500 futures are now only down 0.1% after having fallen by roughly 0.6% earlier in the session.
Despite the price action we’re seeing, I’d stay cautious as we tend to see the heavy selling in bonds hit in US trading. It has been quite a rather consistent theme since last month already.
And so, even if 10-year yields are back down to 4.81% currently, we might just end the day closer to 5.00% and that wouldn’t really surprise me. This is really the only space you need to watch in markets right now.