Remember the turn of the year when the market though the US was due for a “v”shaped economic recovery? Risk was in vogue and bond yields were firm. Than reality bit. The US recovery leveled off while the euro zone spawned a sovereign debt crisis. Yields slumped and stayed in a range, until today.
Yellen’s hawkish-for-her comments last night comments last night, lackluster bond auctions and heavy corporate supply are all pushing yields up. The buck has taken support from those higher yields, especially against the interest rate-sensation yen.
