The ‘Freight Train’ to Higher Yields Won't Be Derailed So Easily
- Treasury yields remain above forecasts even after equity rout
- Guggenheim’s Minerd sees ‘tug of war’ between the two markets
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It’s going to take more than just a few days of extreme turbulence in equities to keep Treasury yields down.
The day after stock-market volatility surged the most on record and the Dow Jones Industrial Average suffered its steepest point drop in history, the 10-year yield resumed its march higher. It was up 6 basis points to 2.77 percent as of about 1 p.m. in New York. While that’s down from the four-year high of 2.88 percent reached Monday, it’s still above the first-quarter forecasts from 59 of 63 analysts surveyed by Bloomberg.