Long end leads yields higher
It's always easier to make sense of markets in hindsight and with bonds, it increasingly looks like the last leg was a short squeeze. The coup de grace was early today when 30-year yields fell to 1.92%.
They've since jumped all the way to 2.10%. That's still some ways back to 2.22% before the Fed but it underscores how the market might now have shifted that much since last Wednesday's surprise.
Again, it's all a bit easier in hindsight but you could see the genesis of it almost immediately after the Fed. With trading though, it's all about timing and the shorts were squeezed hard before this impressive rebound.
