The US bond market moved sideways over the fortnight having correctly discounted a 50 basis point ri...
The US bond market moved sideways over the fortnight having correctly discounted a 50 basis point rise in interest rate on the 16 May. Yields on shorter maturity bonds are now near their February highs, while 30-year bond yields have been trading close to 6.2% for most of the month. The market is discounting a rise in rates and the debt buy back programme is offering support, particularly to longer maturities. Equity market volatility is continuing to favour bonds but the market will require solid evidence of a slowdown in economic activity before rallying. With the Fed signalling it will ...
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