“Four per cent is possible this week if the banking sector fears subside and the US CPI data is on the strong side,” Alvin Tan, strategist at RBC in Singapore, said of 10-year yields. “The only certainty is that volatility will stay high.”
US 10-year Treasury yields may snap back up to 4% as government efforts to quash contagion risks from the collapse of Silicon Valley Bank damp demand for haven assets.
That’s the view of Mitsubishi UFJ Morgan Stanley Securities Co. and RBC Capital Markets, who see a risk US sovereign debt will relinquish its biggest two-day gain since the onset of the pandemic after authorities guaranteed access to SVB deposits. US inflation data due Tuesday may send traders into another frenzy should prices rise faster than expected, putting more selling pressure on Treasuries.
