Bond sell-off indicates new real rates regime
Since the start of the year US bonds have been under pressure as the ‘reflationary’ theme has gained momentum. Despite the concerning increase of new COVID-19infections, the Democratic win in the Georgia runoffs, the OPEC oil cuts and stronger-than-expected December data provided solid support for more rotation across and within assets. US 10y rates broke the 1% threshold with breakeven rates now above 2% and real rates moving higher.
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