10-year yields have changed little around 1.577% currently
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Yesterday’s decline in long term yields was a bit of a headache and I want to say it was more about the flows than anything else.
Stocks were softer, but we’re not quite on the verge of major risk aversion sentiment, so the steep decline was a bit of an outlier, given the technicalities.
10-year yields looked set for a surge above 1.60%, but now hold just below that level, which will continue to be a key level to watch over the next few days.
For now, yields appear more stable with 30-year yields standing at around 2.08%, but that’s close to 10 basis points from earlier week highs.
The US CPI data and the release of FOMC minutes today are the top risk events to watch out for, so let’s see how this turns things around before the start of the second half of the week.