Having seen long-bond yields collapse on heavy volume immediately after The Fed’s decision last week to hike rates, it appears the “policy error” message was just too much to bear for an un-manipulated market. The last 2 days have seen a very light volume 13bps surge in 30Y yields, now back above the Maginot Line of 3.00% – erasing any “policy error” questions post-Fed… for now.

Of note is the fact that China’s Yuan has strengthened the last 3 days – correlating with the weakness in Treasuries.

Charts: Bloomberg