The beginning of the year was marked by sharp sell off across US bond market.
Both US 10 Year T-Note and 30 Year T-Bond futures drop significantly despite relatively calm seasonality for this period. We see this as very negative sign for bond markets for the rest of the year.
A lot of factors weigh on this negative performance of bond market but most important are inflation expectations rising, wage growth rising, increase of government spending and so on. All of these add fuel in this pro inflationary environment.
We remain bearish going forward for US bond market and we think market already turned.