Yesterday saw US Treasury 10 year yields rising around 20 basis points and the 10Y-2Y yield curve spiking to 116 basis points. Now it is Europe and the Pacific’s turn.
As of 7:42am EST, we are seeing 10+ basis point increases in 10-year European sovereign bond yields in most countries, most notably in Germany, France and Italy.
In the Pacific, Australia and New Zealand are seeing what we saw yesterday in the Americas — 20+ basis point increases in 10-year sovereign yields.
Is this the end of the bond super-bubble? Or a momentary disturbance in The Force?
OR could it be the video of Pop-tart Miley Cyrus crying over Hillary Clinton not being elected is causing the bond super-bubble to burst? OR could it be the realization that super-low interest rates are actually counter-productive?
We shall see. But as Trump-threatening actor Robert De Niro begins looking more and more like Obi-Wan Kenobi from the original Star Wars movie, it may just be a disturbance in the force.
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