It has been rather one-way traffic since August as the Fed continues to reaffirm their resolve to tighten policy further since Jackson Hole. The events in the UK also didn't quite help with broader market sentiment over the past few weeks but with that dying down, the Fed is now the main focus again.
10-year yields are up another 3 bps to above 4.25% today, moving to its highest levels since 2008.
With the central bank bonanza coming up in the next two weeks, the bond market will remain the key driver for trading sentiment. It'll all come down to the communique from major central banks but ultimately, all eyes will be on the Fed. And with US inflation continuing to keep higher, it's hard to imagine the narrative changing in two weeks' time.
For now, the push higher in yields will continue to keep a lid on any optimism - particularly in risk assets - as we have seen in the past two days.
