Flashback: Is The Duration Trade Over?

Where Macro Meets Markets

Originally published August 11, 2020.

This week, the Treasury will issue $122B in 3-, 10- and 30-year paper. So, is the bond trade over? Maybe not initially, but we are likely to continue to see bond yields begin to rise.

The consensus will seek to it that the inflation narrative permeates, and marginal prices may rise. However, we note that either the in…