U.S. 10-year yields are spiking upwards in what was supposed to be a sleepy day before the Fed’s Jackson Hole conference. The 2s10s curve is the steepest in two weeks. Eurodollar yields too have risen sharply and are up 6-7 bps in the blue and gold packs.
Over the last week, we have seen a steepening in the US Treasury Actives curve and the US Dollar Swaps curve.
This may be linked to the range breach in German 10-years and Italian 10-years. In fact, France, Spain, Portugal, Netherlands and Greece has all seen 6 bps leaps in 10-year sovereign yields today.
Does this mean that Chairman
Mao Powell is likely to announce the paring-back of Fed monetary stimulus at J-Hole?