US 10-year yields up to 1.29%
Risk trades have impressively bounced back since the low early in New York on Tuesday but so far 10-year yields have capped out right where you would expect, falling just short of Friday's closing level of 1.3003%.
A rise above that tdoay would be a proper three-candle reversal and solidify hopes of a bottom. We're not there yet but there's still time today. The tail in the 20-year auction is certainly supportive of higher yields but there hasn't been the kind of follow through you would expect. Instead, we're back below pre-sale levels.
If we can't crack 1.30% today then it will be back in play tomorrow.
Ultimately, hopes for a v-shaped reversal are likely misplaced. It's more of question of what the consolidation range will be.
