Macro Strategy Insights

Something Is Rotten In The State of Yields

Treasuries, European Sovereign, and even Credit. Something seemed rotten this week, with Thursday’s price action in all 3 of those markets triggering the need to focus on this more. Debt markets underpin the entire global financial system and when things don’t “look,” or “feel,” or “smell” right, it warrants our collective attention. Yes, “feel” or “smell” doesn’t seem compelling as some authoritative answer, but that doesn’t mean it isn’t worth exploring. For the past few weeks, our biggest complaint on Treasury yields has been that neither Bessent nor Warsh is addressing the root causes of higher Treasury yields. The root ... Something Is Rotten In The State of Yields

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