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‘Why Are Higher Yields Not Impacting Stocks Here?!’: Nomura’s McElligott Answers
On Wednesday, hours before the Treasury selloff accelerated, Nomura's Charlie McElligott warned that "the market’s skepticism on 'higher inflation' [is] a mispriced risk that could further escalate the rates selloff in unruly fashion."
Fast forward to Thursday and it's safe to say that the rates selloff has indeed become somewhat "unruly". Although Treasurys pared overnight losses a bit once the U.S. got going, the 5-day 10Y yield chart is remarkable:
(Bloomberg)
The catalysts are clear.�
