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10-year yields little changed around 1.577% currently
The dip in long-end yields yesterday was a bit of a headscratcher and I want to say that it was more about the flows rather than anything else.
Equities were softer but we’re not quite teetering on any major risk-off sentiment so the heavy drop was a bit of an outlier, considering the technicals.
10-year yields seemed poised for a push above 1.60% but is now holding just below that so that will continue to be a key level to eye over the next few days.
For now, yields are looking steadier with 30-year yields holding at around 2.08% but that is nearly 10 bps off the highs from earlier in the week.
US CPI data and the FOMC minutes release today are the key risk events to watch so let’s see how that will shake things up before the second half of the week commences.