30-year yields are nearing to highest since June
US 30-year yields touched 1.58% today, edging above the mid-June and late-August highs.
This is mostly about a stimulus package that's going to approach $2 trillion dollars. It's not just the increased debt supply will come with that but the inflation impulse on spending of another $1200, greater unemployment benefits and small business bailouts.
Coupled with that are signals that Democrats are pulling ahead in election polls. A sweep of Congress would unleash further rounds of stimulus spending early in 2021.
