Posted by Hello
In our own markets, I expect to see demand emerging for the 5-yr note around 4.40-4.50%. At that point I would expect the 5-10 and 5-30 spreads to start steepening out. The equity indices in the U.S. still have not shown tolerance of higher rates so until bonds find a bottom I don't see much reason for new purchases.
I described a bet in Exxon (XOM) on Monday. You'll notice I would have lost the bet with the reversal during the week. I still expect oil stocks to consolidate for a while while the underlying commodity still might have room to run.