All year, people have been puzzling over one big question: Why are people so hungry for Treasuries, causing yields to stay so low?
What’s been confusing is that yields have stayed super-low despite the stock market rallying hard. And you’d expect that a hard rally in stocks — a sign of optimism, growth, and inflation — would cause some people to dump Treasuries.
But it hasn’t happened.
But now it might be.
We’re not talking about some historical collapse in Treasuries, mind you… just some air coming out of the market.
Today the yield on the 10-year is hitting 2.19%, which is a level we’ve seen since last October.
Via FinViz, here’s a look at 10-year Treasury futures selling off solidly over the past few days.
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