Market participants are lunging towards the safety Treasuries. It was only a matter of time given the volatility elsewhere.

I still haven't heard of a compelling explanation for yesterday's blowout in bonds but I tend to think it was a side-effect of Japanese intervention and the idea that the BOJ could pivot. Japanese investors were selling to front-run it or get out of a crowded short-JPY trade.

In any case, the latest move in yields is lower. US 10-years are down to 3.71% from a high of 3.82% and are now flat on the day.

bonds

Nothing can bottom until Treasuries do and this could be the start of a compelling reversal.