Treasury yields keep higher as we look to get the session underway
10-year Treasury yields are up 3.6 bps to 1.411% while 30-year yields are up 4.4 bps to 2.277% going into European morning trade today. So far, the push higher hasn't had much spillover effect to equities but it is worth keeping an eye out.
Just before the start of US trading yesterday, higher yields weighed on sentiment before calming down and that helped to allow equities to surge higher on the day.
The thing about the steepening in the US yield curve this week is that it comes as breakevens are little changed - keeping just below 2.20%.
However, real yields are still creeping higher and that is something to be mindful of as it does play into market sentiment elsewhere - especially the dollar.
