Yields Crack 1.3% as Bond Surge Signal Reflation Trade End

  • Date: 08-Jul-2021
  • Source: Yahoo News
  • Sector:Economy
  • Country:Gulf
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Yields Crack 1.3% as Bond Surge Signal Reflation Trade End

(Bloomberg) -- The rally in U.S. Treasuries forged on, sending 10- and 30-year yields to the lowest levels since February, as expectations for an inflationary economic recovery continued to fade.

After grappling with reflation premonitions for months, bond bulls are finally regaining the upper hand. The rate on 10-year Treasuries fell below 1.30% on Wednesday and the 30-year breached 1.92% as the delta strain of Covid-19 hobbled hopes for an imminent end to the crisis and a normalization of central-bank policy. In Europe and the U.K., 30-year yields led a pullback across the curve, while China’s bond futures posted their best rally this year.

HSBC Holdings Plc’s long-term bond bull Steven Major on Wednesday reiterated his forecast that 10-year Treasury yields will slide to 1% by the end of this year and still be there a year later.