_1777293978995_62445876.jpg&w=64&q=75){kind=small}
US bond yields face upward pressure
The technical article discusses issues in the U.S. bond market related to rising yields on long-term bonds, with the approaching 6% yield on 30-year bonds exacerbating risks associated with futures contracts, especially what's known as the "Cheap to Deliver (CTD) Switch." This shift forces asset managers to rebalance their portfolios, leading to the sale of more long-term contracts, which in turn increases pressure on the bond market and drives yields even higher. These developments are concerning because they could trigger a feedback loop that accelerates the rise in yields, accompanied by a strong wave of selling in ultra-long contracts. The market has experienced volatility and preparatory adjustments aimed at readjusting to the rising yields and rebalancing activities.
Notice: This Is an AI-Generated Summary
Comments (0)