US 10-year yields have surged to their highest level since March 2021. The recent increase has been driven by real yields and the fall in breakeven inflation expectations. The 2s10s curve has steepened but at 88bps remains below levels seen even in November 2021 (100-110bps). Meanwhile, both German yields and the curve are close to recent highs. This is helping our US-EU box trade perform well as the German curve has out-steepened the US curve.
US 10-year yields have surged to their highest level since March 2021. The recent increase has been driven by real yields and the fall in breakeven inflation expectations. The 2s10s curve has steepened but at 88bps remains below levels seen even in November 2021 (100-110bps). Meanwhile, both German yields and the curve are close to recent highs. This is helping our US-EU box trade perform well as the German curve has out-steepened the US curve.
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