Commentary via Reuters
Says that HSBC sees the best-risk reward is in US 2-year notes, and that Treasury yields at current levels present a good buying opportunity.
At the same time, they've also revised up their 10-year German bund yield forecast to 90 basis points - up from 60 basis points previously.
I've been tuning into Bloomberg today, and all the fixed income "experts" have all claimed that the recent selloff in equities has nothing to do with the bond market. All of them mentioned that yields are falling in line with the Fed's long-term expectations of 2.75%, so the movement in the bond market was "healthy" and that it was "adjusting" to the Fed's view.
I find it perplexing that they don't believe that movement in the bond market will even have the slightest impact on the equities market. They go on to talk a lot on "fair value" pricing with bonds currently, and that the equities market will have to "sort things out themselves".
It's very much like watching your favourite drama Netflix in some ways.
