This could be a watershed
US 10-year yields are up 9.5 bps to 3.16%.
That's the highest since 2011 as it breaks some enormous resistance levels. This could be signaling the end of a multi-generational bull market in bonds. Worse yet, it could mean a bear market in bonds and that would mean a fundamental rethink of just about everything and every market.
I can't emphasize enough how big this could be in the long term. And that it's coming after very strong ISM non-manufacturing data is telling. If that's confirmed about Friday's jobs report, especially on higher wages then there's no stopping this move and the related move in USD/JPY.
The problems start when stock markets decide the don't like rising borrowing costs, even if it's a signal that the US economy is doing better. I think there will be a goldilocks period for a time but the equity market can quickly get jittery about inflation and valuations aren't exactly at cheap levels, especially if the dollar starts to run.
