US 10-year Treasury yields are up just 1 basis point since the strong data on housing starts and consumer confidence. On the day 10-year yields are still down 1.8 basis points to 2.61%.
I think there’s a case to bet against bonds (a bet on rising yields) here. The market has been stuck in a 2.57% to 2.66% range for most of this month. Yellen sparked a brief foray lower in yields but it quickly turned around.
The market is more boring at the moment than the first half of the Italy-Uruguay match. The case for the Fed to shift more hawkishly is growing
10-year Treasury yields
The next two days will prove interesting. The next revision to the Q1 GDP is out tomorrow and that could send a small chill through the markets but on Thursday the May PCE report is out and that could boost risk trades.
