US 30-Year Bond Yields

The move by the Japanese finance minister helped push the US 30s back under 5% last week as markets hoped less competition for capital would rein in the recent uplift in US yields. When we stand back and review longer-dated US yields, they have traded sideways for two years. It’s only in May that the press latched onto Japan’s JGB longer-dated bond yields, pushing above 3%, dragging US 30s above 5% at the same time.

• We see no reason to fight the 4-5% trading range until further notice, although we see them moving lower over time.