U.S. 10Y reached 1.36%, down 7bps for the session. Meanwhile, the USD sees gains vs G10 peers ex. JPY, the yen leads the group, spot is down to test 110.50 after the YTD highs seen last week. Equities trade lower given risks of the delta variant as a number of nations reconsider lockdown measures.
Some desks have been reporting hedge fund clients scrapping to get what is behind the move in sovereign bonds. Thesis go from the ISM PMI to the move in oil markets, but it is hard to tell. UBS says the move looks more like shorts being stopped out of Treasuries.
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