10-year Treasury yields hit 1.75% again
10-year yields are up 5 bps to 1.75% and breaking that will likely see the selloff in Treasuries gather more pace as traders will start to potentially eye the 2% level next.
With Biden’s spending plans among the focus this week as well, the market is resuming the selloff in Treasuries and it really is just not looking back since the turn of the year.
There has been a slight pullback after hitting 1.75% earlier in the month but the move was limited around 1.60% and here we are again.
One might still argue that the market is getting ahead of itself but with the Fed allowing a steeper for longer narrative, the path of least resistance is quite clearly set out.
Keep an eye on this space as we start to challenge key levels now. That may yet feed through to more dollar strength and yen weakness this week.