It’s ‘A Sharp Bounce, Not A Trend’: Goldman Says Bond Selloff Probably Done After Rout

Bonds were the story on Friday, and really all week, with 10-year yields rising an astounding ~35bps, to 1.90%, pushing through the 50-DMA in the process. The 2s10s steepened more than 4bps on the last day of the week, and briefly managed to peak its head above 10bps. Futures volume surged once yields moved through 1.85%. 30-year yields are back to 2.37%, a remarkable move considering nobody knew where the bottom was last month, when 2% was breached to the downside, prompting Steve Mnuchin to
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3 thoughts on “It’s ‘A Sharp Bounce, Not A Trend’: Goldman Says Bond Selloff Probably Done After Rout

  1. Whatever the case, we just witnessed a bond bloodbath of epic proportions. This is what you call a bad week for bond longs in ETF land… . Tell me about it.

  2. Where were we in late July? It may very well all be a liquidity warning, all told. It seems that markets in general do not detect the threat that could flow from a stronger dollar. “Central banks are about out of ammunition”. Don’t be surprised if market related manifestations of all that are going to look like a multi dimensional rampage soon. I wouldn’t hang my hat on the US consumer now any more than I put it on China to stimulate Europe 6 months ago. It is a good time to catalog recently spoken nonsense rather that current short term forward prognostication.

  3. It was really good for me when the bond yields rose , I was in UK bank shares and £13,000 down , I ended the week £2000 in profit and have now sold. I am staying in cash now and am expecting a really bad global recession , national debt in Western economies is unsustainable. I look forward to some bargain shares in about 3 years . Tighten your seat belts .

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