(Harvest) Looking at recent developments in the developed world’s sovereign debt markets, an investor could be excused for feeling like they are on a roller-coaster ride. Indeed, from the beginning of May through the third week of June, market participants witnessed surging U.S. Treasury (UST) 10-Year yields , followed by chaos in the Italian bond market, which led to some noteworthy flight-to-quality trades in both the U.S. and Germany. But the first headline-grabbing event came in the UST arena. To be sure, the 10-Year yield finally broke through a key technical level (3.05%) to post its highest reading since 2011. Interestingly, this “new peak” did not last long, as once again, developments out of the eurozone rattled global bond markets.
Sovereign Debt Yields: Like a Day at Six Flags
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