From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
You already know how we feel about the US Bond Market.
We like the short side when it comes to treasuries.
Lately, we’ve been keeping a close eye on the long end of the curve since it hasn’t kept pace with shorter-term yields. Though this is still the case, the 30-year yield has found support in recent weeks as rates continue to rise across the curve.
This should keep the bulls happy for now as an environment where long rates are making new lows is not supportive of higher prices for risk assets.
But that’s not what’s happening. We remain in a rising-rate environment and don’t see signs of that changing anytime soon. As long as this remains the case, we want to be selling bonds and betting on higher prices for risk assets.
We’ve already discussed the US bond market plenty. Our position is clear.
In today’s post, let’s take a look outside the US and discuss how we’re approaching international debt markets these days.