Rates sell-off continues, driven by the curve while front-end rates have been surprisingly steady. Higher real rates, credit spread widening, curvature making a comeback. Rates sell-off continues: 10y real rates above 100bp • 10y nominal rates above 3.5% • 10y Bund yields breaching 3%. Front-end rates have been surprisingly steady: • ~100bp of total rate cuts priced. • Dec23/Dec24 Euribor futures hovering around minus 50bp. => Sell-off is driven by the curve and mostly by the USD curve, though ECB speak of PEPP run-off and a very steep implied inflation curve adds some EUR arguments for higher term premia to the mix. (full story)