No change, bond yields continue to tread water after a strong 2021 gains, our preference is they will continue to drift lower and we actually feel they will probably take out the lows of April creating a washout move to the downside – if this does unfold MM will look to gain exposure through an ETF targeting rising yields through 2022. As we’ve said previously such a move would potentially coincide with the $US breaking to new lows for the year.
Interestingly a number of financial articles this morning were again blaming the dip by US equities on concerns around inflation, this is not the case in our humble opinion with bond yields making 3-week lows overnight painting the totally opposite picture. If we are correct and yields continue to fall into June / July the main takeout is tech will continue its recent outperformance over the resources.
MM is looking to buy bullish US bond yield exposure ~1.3%
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