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Bonds slide early as yields jump and curve steepens

The move comes without an obvious catalyst, with traders pointing to month end positioning and a widening gap between 2 year and 10 year yields.

Reported · Written up by our desk · Economy

Bonds opened slightly stronger but sold off quickly just after 8:00 a.m., with Mortgage News Daily describing the decline as consistent with month end positioning.

The outlet said the selloff appears not to be driven by oil, noting oil prices were higher than Friday but that the spike in bond yields did not correlate in the typical way.

Mortgage News Daily also highlighted a sharp shift in the yield curve, pointing to 2 year yields staying unchanged while 10 year yields rose by more than 5 basis points.

With heavy curve trading occurring without clear catalysts, the outlet said the pattern largely confirms month end trading.

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