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10Y Real Yields Close To Mar’21 Highs

US TSYS
  • The rise in 10Y Tsy yields to new post-pandemic highs, currently up +9.1bps at 1.875%, has come on a 7.5bp increase in real yields to circa -61.5bps as they near Mar’21 highs of -59bps.
  • 10Y inflation breakevens have whipsawed today but are up +1.5bps at 2.49%.
  • With the 5Y breakeven edging lower to 2.84%, the spread has narrowed 3bps to 35bps after steepening through much of last week.
  • Ahead: longer-dated note issuance tomorrow with a 20Y re-open whilst data are limited to housing.

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