Hard-Nosed Sympathy Is Beating Up Bond Markets
A one-two slap from Japan and the Fed sends yields upward.
Sympathy, schympathy.
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On Monday, US Treasury bond yields rose “in sympathy with JGB yields.” It’s an oft-used phrase, and the many people who use such terminology know what they mean by it, but it’s a little strange. Treasury bond traders are a hard-bitten, unemotional lot. It’s not as though they decided to sell bonds as a mark of respect for their grief that Japanese bond traders had just lost money.