Citi on why bond markets have sold off

Citi on the various factors leading to the sell off in bond markets in the past couple of weeks.

Take yer pick ... "Probably has multiplicative causes including

• Higher oil prices
• Earlier monetary easing outside the US
• The bursting of a mini bubble in Bund
• Reversion to type in the way QE impacts yields"

Their outlook:

• Overall, we are inclined to see a buying opportunity in US Treasuries
• Expect narrower UST-Bund spreads .... 10y UST yields are 30-35bp higher than in late April and 55bp off this year's low."