OUCH! UK 10y yields rose as much as 14bps to 4.82%, highest since Aug. 2008
Source. HolgerZ, Bloomberg
Yields spike after somewhat hot US economic data with US 10y now at 4.67%:
ISM Prices Paid Index came in higher than expected, signaling potential future inflation. At the same time, JOLTS job openings unexpectedly increased, with previous month's data also revised upward. Source: Bloomberg, HolgerZ
10-Year Treasury Auction was awarded a 4.68% yield, the highest since 2007 🚨
Source: Barchart
Yields on 10-yr Treasuries are now the highest vs 2-year rates since 2022.
It's unclear whether this is a healthy normalization - a reversion back to the typical relationship of long-term yields being higher than short-term ones - or a sign of stickier inflation and deficit fears. Souce: Bloomberg, Lisa Abramowicz
The correlation between US stocks and bonds over the last 3 years (0.73) is the highest on record.
Source: Charlie Bilello
This is truly historic: China’s 30-year government bond yield has dropped below Japan’s 30-year yield for the first time ever.
Over the last 4 years, China’s bond yield has declined by a whopping 215 basis points. This comes as China’s economy has slowed and experienced 6 straight quarters of deflation, the longest streak since 1999. At the same time, Japan’s bond yield has risen 160 basis points as inflation has picked up in the country. In the past, Japan had seen 3 decades of economic stagnation and had suffered 25 years of deflation starting in the 1990s. Is China entering its own "japanification" economic phase? Source: The Kobeissi Letter, Augur Infinity
China 10 Yr Yield is dropping like a stone.
Irving Fisher Debt Deflation spiral in real time? 1.63% Source: James E. Thorne @DrJStrategy
The Japanification of China: This has to be a contender for the chart of 2024 (30y bond yields).
Source: Albert Edwards
