Five percent is a very important psychological level. People could start looking to build up longs at these levels. |
It's an equity story today in the bond markets. The equities decline is probably due to worsening economic fundamentals, so that will also pull yields down. |
Recent numbers have been very favorable for euro-zone growth. We may see a small grind higher in yields. |
Things are looking much better in the European economy and that's giving the ECB the chance to sound much more hawkish. That's going to keep bonds heading lower. |
We've got a lot of supply so that's putting Treasuries onto a bearish footing. People aren't expecting a good result from the auction and in the short term yields can push higher. |