US: T-Bonds rallying strongly - ANZ

Analysts at ANZ explain that the US Treasury bonds have rallied strongly following a string of ‘disappointments’, the latest being murmurings that the ECB is worried about higher bond yields.

Key Quotes

“This was, of course, always likely with the TLTROs not being rolled over, for it would allow short term European bond yields to rise as buyers disappear. We too are concerned about rising European bond yields; how will borrowers like Greece et al. cope? – yes that little ‘issue’ hasn’t gone away! But for the US, we’d phrase the question the other way around: how will investors cope with US bond yields below core rates of inflation and the Fed’s flagged terminal fed funds rate? Not well we surmise.”