US: 10 year bond yields have taken a firm hold above 3% - Danske Bank

After the break of the pivotal 3% mark yesterday, the 10 year US government bond yield have taken a firm hold above 3% trading at 3.03% this morning, notes the research team at Danske Bank.

Key Quotes

“While we continue to hold the view that it is too early to call for a major fixed income sell-off given the business cycle outlook and still dovish central banks, the break of the 3% in the 10 year US yield has created room for higher US yields supporting the case for further widening of the 10 year government bond yield spread between the US and Germany, which is currently at the widest level since the inception of the European Monetary Union just below 240bp.”