• Meanwhile in markets, the bond market remains a bloodbath following last week’s double whammy of a hawkish ECB U-Turn and a much, much stronger than expected US labor market report.
  • At pixel time, Treasury and Bund yields were still trading near Friday’s multi-year highs. And if real yields and commodity prices are any guide, central banks’ hawkish pivot is far from over. Our trusty real yield chart, the best chart for optical analysis, has the German 10-year real yield at minus 1.70. That means there is another 20bps before we reach the 2021 real yield peak of minus 1.50.

 

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