US Treasury 10-year yields head higher as markets cheer Xi's speech and opt for risky assets
The 2.80% can be seen as the line in the sand right now, as if yields stay above it there is a belief that we will see it touch 3.00% in the near-term. But stay below, and a more worrying signal may start to develop.
Earlier in the day Fed's Kaplan talked a little bit of an inverted yield curve, and there are merits to that. While the 2-10 spread may be not be an accurate indicator - depends on who you're arguing with - of a recession, historically it's never a good sign.
Right now, it's back down just under 50 bps. And that is something the Fed will have to keep an eye on when they raise rates further this year and shorter-term yields edge higher.
