• The bond market sell-off rumbled on merrily this week. And with real yields finally rising, the advance in equities has been halted. For the week 10y and 30y Bund and US Treasury yields are up by around 5bps to 8bps, with the heaviest losses for the 30ys. Interestingly, while US economic data was strong this week, this didn’t seem to have given a further boost to yields.
  • The German 10y real yield is now up 20bps from its all-time low, trading at minus 1.58 at pixel time. Pre-covid levels were around minus 1 percent, though the economic carnage resulting from the pandemic would justify a slightly lower level.

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