Bonds: amazing how markets have taken big rise of the 10-year US - BBH

Analysts at Brown Brothers Harriman explained that it is amazing how well the world economy and financial markets have taken a tremendous rise of the 10-year US yield. It finished July at 1.45%.

Key Quotes:

"It was 1.58% at the end of August and little changed in September. In October, the yield rose 13 bp to 1.82% before surging 55 bp in November to 2.38%.

In the first half of December is it up another 22 bp. Although the 2.75%-2.80% may draw some interest, it is the 3.0% area that many seem to be anticipating.    

The March 2017 note futures contract may be headed for the 2014 lows on the continuation contract near 122-20. A break there brings the price back to 2011 levels.  

Caution is in order. There has been a big move and neither the RSI nor the MACDs have confirmed it, and the March contract finished below its lower Bollinger Band."