The market got a bit carried away
The 6 bps drop in German 10-year yields today is the largest in four months.
It's indicative of what's happening throughout global fixed income and it's uniform across the curve.
Two things:
- This could be bond shorts taking some off the table ahead of the Fed
- We may have seen some squeezes that pushed these moves beyond where they really should have gone, given the uncertainty about bottlenecks and the path of rates
