Stop What You're Doing And Watch Bonds Now
The Treasury market appears to be having a major malfunction.
The Treasury market appears to be having a major malfunction, with yields skyrocketing in the last 48 hours - with the 10Y yield now over 4.3% as I write this, despite Treasuries supposedly being a “safe haven” in the midst of a broad market selloff that you’d think would have the bond market calling for lower rates.
To familiarize yourself with what could be going on, please read this article that I published last week, explaining how the “basis trade” works:
The two second explanation, if I had to give it to you, is this.