US 10 year yields
The 17 bps jump in US 2-year yields to a new cycle high today is grabbing all the headlines today but the next big level to fall might be further out the curve.
US 10-year yields are up 8 bps today to 3.44%. That puts them within striking distance of the June high and the 3.50% level.
Notably, that's below the 3.74% where 2s are trading today as the curve inverts more deeply on worries the Fed will have to engineer a recession to get inflation under control.
As rates push higher at the long end it's a bigger drag to borrowers with home owners particularly vulnerable to 30s. Corporate issuance in the 10-year range is also large and we're seeing an absolute rout in the Nasdaq today, which is now down 4%.
