US 10 year yields are surging.

They’re now up 7.7 bps on the day to 1.4078%. It’s the first trip above 1.40% since mid-July and breaks a quadruple top ahead of the level.

Initially, the bond market was trading like the Fed taper was a policy mistake as long end rates fell yesterday. However it’s all turning around today as less Fed buying plus the fear of inflation plus great risk sentiment life bonds.

The risk now is that a negative feedback loop starts for stocks. Tech in particular has been sensitive to higher rates.

In FX, the US dollar is beginning to fight back in the last 10 minutes on rate differentials. Note though that global bonds are generally moving in tandem with US rates.