• Meanwhile in markets, a new week of trading means new losses for bonds. And the causes of the bond market sell-off are all too familiar: high inflation, hawkish central banks and the ongoing supply chain squeeze.
  • In Asian trading US Treasury yields are extending last week’s increases, with the 10y rising to a new multi-year high of 2.77 percent. The yield curve is still steepening because of what we would dub the Quantitative Tightening reflex. Expect the flattening to make a return once QT and more rate hikes are underway, which will result in the inevitable inversions in key parts of the yield curve.


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