Overnight, the BOJ trimmed its purchases of long-dated gov’t bonds, which sent global yields higher. In the United States, the UST10Y stands at 2.548, nearing a critical breakout level of 2.64. Global traders are concerned about the BOJ unwinding loose money policies, which would result in a taper tantrum globally.
On top of the JPN woes, the concern for US fiscal stimulus could move rates higher and stifle the economy…
In the United States, the UST10Y prints at 2.548 nearing levels not seen since Trump was first elected to office. If the 2.64s are taken out, there is a risk for further upside to 3%.
USt10Y (weekly)- Quick move to 3%?
Gross: Bond bear market confirmed today. 25 year long-term trendlines broken in 5yr and 10yr maturity Treasuries.
— Janus Henderson U.S. (@JHIAdvisorsUS) January 9, 2018