US10yr is attempting a technical breakout. I never thought FedFunds would expand meaningfully beyond 3.5%, simply because the US Treasury could not handle rates that high. There is a major disconnect in IG/HY credit spreads. Duration is absolutely not reflecting the premium it should require. Everyone seems oblivious to the incoming pain, especially the US Treasury Secretary. See her on TV gushing over the “strong economy”. When asked about debt issuance she grins and says she isn’t worried at all. There will be buyers.. I would ask for how much longer at these rates. Price down yield up