Bonds & Rates
Treasury yields push higher and credit slips
Rates move up sharply, while investment-grade, high-yield and muni proxies all close lower.
Treasury yields climb across the curve. The 5-year rises 1.2% to 4.461%, the 10-year adds 1.0% to 4.703% and the 30-year gains 0.5% to 5.171%. CNBC Markets says the move comes as surging oil rekindles inflation fears.
Bond proxies soften alongside the selloff in equities. TLT falls 0.3% to 83.17, while the Vanguard Total Bond Mkt fund slips 0.2% to 9.52. The data also shows the 10-year and 30-year sitting above their 50-day and 200-day averages.
Credit is under pressure too. LQD drops 0.4% to 106.26, HYG falls 0.4% to 79.23 and MUB loses 0.6% to 105.26. LQD’s RSI14 is 19.3 and MUB’s is 8.2, signaling deeply oversold conditions in the data.
The move lines up with the day’s broader rate scare. Higher oil prices, a firmer dollar and a jump in volatility leave fixed income trading with little shelter.