A 1% Treasury Yield Proves Elusive With Pandemic Intensifying
- Post-election selloff failed at implied 10-year level of 0.99%
- ‘We are in for volatility through the end of the year’
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The bond market is demonstrating that the road to higher Treasury yields is going to be a rocky one, leaving bets on a reflating economy and a steeper curve hanging in the balance.
All eyes in the world’s most important debt market were on the 1% level on 10-year Treasuries last week, as a volatile, post-election selloff pushed the implied yield on futures within a hair of touching that mark for the first time since March. Surging coronavirus cases then took over the narrative, fueling a rally that left the cash rate at 0.9% to end the week.