- A reported short squeeze in US long bonds pushed prices higher and yields lower as traders covered bearish positions linked to expectations of a Treasury backstop.
- Thirty-year Treasury yields reached roughly 5.3%, their highest level in almost 20 years, amid inflation concerns, rising government debt and competition from hyperscaler bond issuance.
- Long-government funds attracted nearly $6 billion in July, including $5.3 billion of inflows into TLT, indicating dip-buying demand despite elevated long-end yields.
Quotes
“Thirty-year US Treasury yields have surged to roughly 5.3%, reaching their highest levels in almost 20 years following a significant selloff”
“buy the dip”