View: UST_Yield_Curve.png

End of the line for the financial "All you can eat buffet?" 

As the US, (well all those called Ben), have decided to let any US bond that doesn't mature in 5 years to do what it wants, they are old enough to look after themselves and know better, as Mrs Flashbang would say, perhaps we should turn East to look for guidance , from whence it came in late May.  

US 10 year yield pickup for Japanese investors looks appetising at 185 basis points if they can get out of their own stock at 85 basis points, (we've already seen them doing so at lesser terms. I think we kiss goodbye to the recent becalmed JGB market, where 10 day observed volatility has come back to just 2.4%, dragging 30 day down to 3.6% in the process.........that's going to be fun. Volatility back in the Japanese bond market would not sit happily everywhere else.