• Meanwhile in markets, Bund and Treasury yields that had sold off on rate hike fears have retreated to key technical levels. At the same time, equity markets continue to do what they have been doing since April 2020, and that is to rally.
  • US Treasuries have performed well since last week’s FOMC decision and despite Friday’s solid US payrolls. Over the past five days the 5y is down 11bps while the 10y fell 9bps as the more outlandish rate hike bets have been priced out. 10y Bund and Treasury yields have both fallen to their 200-dma:

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