It seems shorts keep covering and the Chinese keep buying (through Belgium of course - as they sell CNY, buy USD, and grab the extra yield on Treasuries). Despite stocks relative stability, 10Y yields have just hit 2.40% for the first time in over 11 months (as USDJPY broke down). It seems this morning's dismal GDP print was just enough to confirm the growth/inflation slowing meme (in bond investors' minds) and the yield curve is flattening even further...
10Y at 11 month lows at 2.40%
Led by USDJPY
As the divergence grows...
Why are they buying Treasuries? because they offer great yield pick up - unbelievably...
Charts: Bloomberg
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