- US Treasury yields notched their biggest quarterly surge since 1994, a violent repricing of the front end and belly of the curve.
- Despite that move, the view for lower US Treasury yields persists among forecasters, leaving positioning skewed toward duration gains.
- The gap between a historic quarterly yield backup and a still-lower-yield consensus sets up a two-sided risk for rate-sensitive assets.
Quotes
“Lower US Treasury yield view persists despite biggest quarterly surge since 1994”