I thought the bond market might enter the weekend quietly due to the light US economic calendar, but a few calls for a more hawkish Fed led to another rout.
Here are the 10-year yields on the intraday chart, up 10 basis points in 40 minutes.
What is most troublesome here is that initial yields increase faster than long yields. At 2.46%, US 3-year yields are now yielding more than 10-year yields.
One of the classic recession signals is the 2s10s reversal and it’s now just 11bps.