The US bond market has recovered almost 30 basis points from October’s yield highs.
The 10yr is around 5.07%, against 5.36% on 7 October. The question now is whether the economy can withstand the tightening still embedded in market prices.
My bias over the next 1 to 2 months is towards owning duration, with a preference for the 5yr sector. The opportunity is a reassessment of how far rates rise in 2027. December’s hike can happen without validating the entire tightening path.
Join to gain access to www.globalmacromethod.com and a discord (link) that is about to officially launch… Things are just getting started at GMM!
