Tell me what bonds do in October and I’ll tell you what the rest of the market will do.
There’s a reasonably strong consensus that anything around 4% is attractive in the long term but the buyers aren’t rushing in or they’re being overwhelmed by mechanical selling and the kind of margin calls that caused the BOE to intervene.I wouldn’t read too much into today’s price action because of quarter end but early next week will be telling. A soft non-farm payrolls report next Friday would certainly knock down yields (and the dollar).