While a few media outlets had premature releases yesterday, Bloomberg data just confirmed that for the second time this year, 10Y US Treasury yields have crossed 3% (it was 3.005% in Sept 2013) breaking to the highest since July 2011 (right before the yield collapse after the US debt-ceiling downgrade debacle). We are sure the media will proclaim this as ‘proof’ that the recovery is different this time, except the term structure continues to flatten (suggesting less faith in the future) and to spice things up 30Y mortgage rates have surged to 4.63% – almost the highest since May 2011 – but again, apparently, this won’t affect the housing recovery either (even though mortgage apps are down two-thirds from their highs).
The last 2 times 10Y was at 3%, S&P was at 1340 (and fell considerably after) and 1650.
It seems WSJ and CNBC may have their bond math off by a fraction as Bloomberg never triggered until now…
Charts: Bloomberg
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/3aMcI6qsIfc/story01.htm Tyler Durden