The bond market is telling an important story. Yesterday the U.S. 10-year yield collapsed and there has been follow through today, with it moving into the open at an 11-month low of 2.42%. This is not the year anyone expected. What is interesting about the shift lower is the catalyst (or more appropriately lack of a catalyst) with no U.S. data, Fed speakers or spikes in risk aversion. The shift lower was global and important. The take-aways are multifold and include:
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Scotiabank