The short side of the U.S. bond market is getting stronger and stronger, which may have a significant impact on all asset markets.
The U.S. 10-year U.S. bond yield rose to 1.62% on the 5th, the highest since February last year. As the U.S. employment figures better than predicted, coupled with the Federal Reserve Board (Fed) Ball does not seem to care about the rise in the U.S. bond yield, so that the bond shorts have more bottom.
As the U.S. government is about to implement a $1.9 trillion bailout plan, the Fed to maintain ultra-loose monetary policy, coupled with the acceleration of the new crown vaccination operations, so that the market is expected to strong recovery after the Epidemic, increasing inflationary pressure, the risk of continued increases in bond yield rates, and will impact the stock market, and lead to tight financial conditions. Even so, Wall Street experts so far are still reluctant to quickly raise the U.S. bond yield estimates for the end of this year.
BMO Capital Markets global bond market director Kelins said, the current rise in colonial interest rates fierce, the problem is how high the colonial rate to be considered too high, prompting the Fed to suppress the colonial rate.
In the face of rising colonial interest rates, U.S. stocks have shown weakness, especially technology stocks; at the same Time drive mortgage rates up, posing a risk to the housing market. The market is currently focused on the impact of rising colonial interest rates on U.S. stocks.
TD Securities and Societe Generale have raised their estimates for the U.S. 10-year bond yield at the end of this year, from the original 1.45% and 1.50%, respectively, to 2%. 1.75% is expected by BMO to be the next hurdle.
The U.S. Treasury Department this week will bid for a number of bonds, including 10-year and 30-year bonds bid amounted to $ 62 billion, which is more attractive to short positions.
Recent Comments