Pretty impressive move in the 10-year Treasury note yesterday; the yield jumped above 0.95% and is holding there this morning. That puts us back to nearly the highs we reached on election night. We haven’t been above 1% since March.
It wasn’t just there that we saw some big bond-market moves; investors also piled into high-yield a.k.a. “junk” bonds and drove the yield on the Barclays’ index down by the same amount as Treasury yields rose, about 10 basis points. That’s a pretty big “risk-on” signal, as analyst Brian Reynolds of Reynolds Strategy pointed out; what’s more, it’s the second such day in a month of such combined moves (the first being Nov. 9th, on Pfizer’s vaccine announcement). That means we’ve got a “cluster” now of risk-on credit days, which is historically a bullish thing.
The last ones were in 2015 and 2016; prior to that, in 2011. Going back