Surging Bond Yields Still Aren’t Breaking Anything Yet
How to play this spike depends a lot on how you view the macro economy: A continuing miracle, or catching a falling knife?
A sleeping Chinese market is a luxury LVMH and others can’t afford.
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Rates are still going up. Ten-year Treasury yields reached yet another round number of sorts as October trading got under way, touching 4.7% for the first time since 2007. Real 10-year yields surged to 2.325%, their highest since 2008. In the UK, the ruling Conservative Party’s annual conference featured an intervention by former premier Liz Truss to propose that the party should immediately cut taxes — and the 10-year gilt yield responded by gaining 12.7 basis points to 4.561%. That’s slightly less than the Treasury, but amazingly it’s now higher than the equivalent Greek sovereign yield.