- Nov 19, 2014
- 9,276
- 15,008
and it begins again....uptick in 10y just killed the morning trade...
I am not saying anything factual here, but IMO when the 10yr. Treasury hits 1.60ish, that seems to be when the machines kick in. But it is not just the 10 yr, it is also the 5yr and 7yr, aka the belly of the curve. Those durations are actually higher today while the short end does not move and the long end was down a bit. At some point the market will move away from this focus but no one knows when. What I think will be most troubling is if/when the market calls the FEDS bluff and starts driving the shortest durations higher.