The Weekly Fix: Brace for 5% Yields After Long Bonds Melt Down
Mary Daly, president of the Federal Reserve Bank of San Francisco.
Photographer: Bess Adler/BloombergWelcome to the Weekly Fix, the newsletter where 5% is the new, new normal. I’m Bloomberg’s chief rates correspondent, Garfield Reynolds.
Anyone looking for Treasuries to bounce back after September’s savage selloff has been severely disappointed. The combination of hawkish comments from Federal Reserve officials and a patina of strong, but second-tier data points, saw October begin with investors rushing for the exits. Yields spiked yet again, with the 30-year touching 5% for the first time since 2007 and traders bracing for the 10-year to reach that level within weeks.