10-year Treasury yields up just above 1.61%
It has been tough to keep bond sellers at bay since the turnaround after the non-farm payrolls miss on Friday. 10-year yields fell to around 1.48% at the time but is now trading up to 13 bps higher at around 1.61% in European morning trade.
There is still some room for trepidation at these levels as they are still fitting with the recent range and there is some topside resistance for yields closer to 1.65% before getting to the pivotal 1.75% level.
That said, the rebound on Friday coupled with the start this week suggests that bond sellers are still very much staying on top of things and that the inflation narrative isn't something that will be going away any time soon.
In fact, 10-year breakevens have surged further to near 2.53% now - its highest level since March 2013*.
