US 10-year yields are now 0.1 basis points higher on the day at 4.55%. Earlier, they had fallen as low as 4.48% but have now turned around, despite the pain in equity markets.
US 10y yields daily
These moves in bonds are deeply troubling.
What I (and many) expected coming into this week was buying in bonds due to quarter-end rebalancing. Instead, the wave of supply that begins with today’s 2-year auction appears to be winning out. In addition, the comments from Kashkari have the market worried about materially higher Fed funds.