Bonds & Rates
Long rates keep grinding higher
Treasury yields rise again, while bond proxies and credit funds stay under pressure.
Treasury yields extend the selloff. The 5-year Treasury yield rises 0.06% to 5.0%, the 10-year climbs 0.22% to 5.125%, and the 30-year advances 0.35% to 5.42%. CNBC Markets says the 30-year reaches its highest level since 2004.
Bond funds and credit proxies weaken. LQD falls 0.3%, HYG slips 0.1%, MUB drops 0.4%, and TLT loses 0.5%.
The broader message is still one of pressure at the long end. The 10-year is above its 50-day and 200-day averages, and its RSI14 reads 76.8, while the 30-year also sits above both moving averages with an RSI14 of 66.2.
CNBC’s coverage ties the move to a continuing bond market rout, with Fed commentary adding to the backdrop. Philadelphia Fed’s Anna Paulson says modest rate moves may still be needed to tame inflation, while New York Fed’s John Williams says another rate hike by year-end is reasonable.