Reflation Trade Continues As Yields Climb, Bond Rout Intensifies

Well, the reflation trade (see here for more) marches on as the 10-year tacked on another 6 bps to move to 2.47%: This is is something you need to pay close attention to. Remember, we're talking about some $1 trillion in losses since July. Here's Goldman: We predicted that a 100bp interest rate shock would translate into over $1tn in market value losses. Recent events tested that prediction, as 10-year Treasury rates have risen 100bp from the lows in July. Over the same period, we estimate th