As mentioned previously the combination of a weak bond auction and strong CPI (inflation) data reignited the fire beneath bond yields but the longer dated 10-years remain well below their March and October highs as bond traders are clearly positioning themselves for a global economic slowdown as stimulus is removed and interest rates normalised i.e. interest rates are increased by central banks.
NB If the demand for bonds at an auction is weak prices fall (just like a house) but due to their inverse correlation this leads to yields increasing.
MM remains bullish bond yields through 2022
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