The fundamentals and seasonals may be aligning for bond bulls.
Today’s softer US CPI and retail sales numbers led to a big rally in bonds with 10-year yields down 8.4 bps to 4.35%. That’s well below the 4.73% peak at the end of April.
US 10s
Bond buyers will be glad to know that the seasonals for yields peak in May, or May 13 precisely. That’s a modest signal in something like fixed income but if you look at the above chart, the trendline from the February low is also cracking.
