Pop in yields reeled back in
Treasury yields are on the tip of everyone's tongue at the moment but today's price action shows it's not a one way market.
After 30-year yields rose to a post-pandemic high of 2.18% earlier today they've reversed down to 2.12%, down 1 bps on the day.
One of the factors is the reflexivity with stocks and bonds. Once yields rise, stocks start selling, but once stocks selloff, then there's a demand for the safety of bonds. Generally, this leads to a slow higher grind in yields and stocks with brief interruptions of heavy selling in both.
The other factor for yields is foreign demand. Global yields are also ticking up but the growth/inflation picture elsewhere (particularly in Europe) is not as rosy and the spread on 10-years is already +160 bps.
