Did the market just learn that House Republicans are a loose coalitions of unbending hardliners?
It’s tough to make sense of these market moves but the bond market has been unflinching today and it’s getting worse. US 5-year yields are now up 16.6 bps on the day and have broken the October high of 4.875% and continued to 4.88%.
US 10s daily
The US dollar is rising once again in tandem.
Overall, the market moves today are tough to explain but — ultimately — higher yields are negative for stocks and positive for the dollar.