Head Fake Or Next Leg Higher In Rates?

Head Fake Or Next Leg Higher?

The violent rip higher in long-end yields over recent weeks caught many investors offside. Since then, we have given back part of that move, but rates remain at technically important levels.

The big question now is whether the latest rates spike was another failed breakout, or the beginning of a more sustained repricing higher in yields that equities and volatility markets are still not fully respecting. Oil, technical support levels, and the renewed sensitivity in equities are all becoming increasingly important here.