Bonds are bid strongly today, led by the front end. US 2-year yields are down 12 basis points to 2.85%. Some see that as a proxy for the Fed limit and it would mean a 50 bps hike in September and no more.
Further out, 10-year yields are down 4.7 bps to 2.685% and that cracks the May low and completes a head-and-shoulders top. The measured target is a fall to 2%, which would imply some serious risk aversion.
