Bond yields continue to grab headlines with real yields pointing higher. A growing expectation of higher-for-longer Fed rates, a resilient US economy and increased treasury debt sales are key drivers for real yields, and one which The US 2-year yield closed above 5% for the first time since March on Monday. But if history is anything to go by (and this time is no different) then perhaps we should be on guard for yields to drop. Jerome Powell’s speech on Friday could well dictate which side of 5% the 2-year yield – which is more sensitive to Fed policy – closes on. With that said, it’s unlikely Powell will strike any ... (full story)