, Columnist
Treasury Bond Bears Look Ready to Hibernate
The sharp drop in 10-year government bond yields points to a possible shift in sentiment after an abysmal three months.
The Treasury refunding announcement may spark a change in sentiment.
Photographer: Al Drago/Bloomberg via Getty Images
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Sometimes Mr. Market just wakes up on the right side of the bed.
Yields on 10-year Treasury notes plummeted 20 basis points on Wednesday, the most since the banking crisis in March. For all the macroeconomic news of the day, it was hard to pinpoint exactly what changed so meaningfully from one trading session to the next. But the rally suggested that we may be seeing a meaningful shift in sentiment after an abysmal three months, with the potential for it to fuel a virtuous cycle.