US 30-year yields rise to the highs of the day

The driver of yesterday’s policy reversal from Donald Trump — at least in the popular retelling — was due to rising long-dated yields. You can see the drop in 30s yesterday just before 13:50 when the announcement has been made.

But in the last hour, they have started to accelerate higher again. The Bank of England also cancelled a 30-year auction today.

The whole dynamic still highlights that there are concerns about liquidity or something happening under the surface that’s leading to persistent selling. In short, Trump may not have rolled back enough.

Secondarily, it looks like Congressional leadership is pushing for a budget with larger deficits. Right now there is some pushback on that but I’m finding it hard to see any real spending cuts in the data.

This article was written by Adam Button at www.forexlive.com.