Soft 10-Year Treasury Yields Defy Explanation: JPMorgan

The US stock market has recovered since the pullback in late January and 30-year US Treasury bonds have rallied 50bp since the end of last year, but 10-year US Treasury yields are still down 40bp for the year, a situation that “defies easy explanation and most likely reflects a complex combination of circumstances,” writes Michael J. Hood, global markets strategist at J.P Morgan Asset Management. Treasury yields: Bearish sentiment doesn’t explain the discrepancy The first explanation for soft 10-year bond yields might be that sentiment is turning bearish, but that doesn’t mesh with the rebound in equities and in other…