Citi on the various factors leading to the sell off in bond markets in the past couple of weeks.
Take yer pick ... "Probably has multiplicative causes including
- Higher oil prices
- Earlier monetary easing outside the US
- The bursting of a mini bubble in Bund
- Reversion to type in the way QE impacts yields"
Their outlook:
- Overall, we are inclined to see a buying opportunity in US Treasuries
- Expect narrower UST-Bund spreads .... 10y UST yields are 30-35bp higher than in late April and 55bp off this year's low."
