Yields are back above the elusive level once again
The yields story is coming back into the picture (not like the dollar needed its help over the last two weeks), but at least it is not hurting dollar sentiment on the day. Yields across all tenors are rising in tandem with 2-year yields rising to the highest in almost a decade.
I've noted in the Asian wrap earlier that yields are getting a bit of a double boost today. The first being a selloff following the Trump-Iran decision, but also from the fact that there was weak demand in yesterday's Treasury auction.
The US Treasury continues to flood the market with supply, and yesterday's 3-year notes auction saw yields come in at the highest level in 11 years - with demand the weakest since November last year.
Jamie Dimon talked a bit on 4% yields yesterday, and it is starting to draw some attention in the market. While yields is surely not going to rise towards 4% any time soon, it is another reminder that with higher inflation in the US and the Fed raising rates still that yields should continue to inch higher over time.
