Couple of things in markets this morning. US Treasury yields grinded lower before rebounding slightly in the Asian session. The entire yield curve has broken out to the downside, with new all-time lows or post-March lows along the curve. The driver still is lower real yields – or investors positioning for a decade of financial repression as debt levels have soared in the wake of the pandemic. At pixel time the 10y was trading at 0.52 and the 2-year at 0.11 as bets on negative fed funds rate remain persistent (low point of USD OIS forward curve minus 6bps).

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