I'm still trying to figure out what 1.7 % bond yield means for no other reason than bond yields are critical right now.
The Fed is totally unfazed by the rise in bond yields this yearto them, it all looks hunky-dory and in keeping with an improved economic outlook and the prospect of considerably more Treasury supply to come.
The minutes to March's FOMC indicated that some on the committee think financial conditions might be a little too easy and encourage undue risk-taking. Yet the Treasury market didn't blink.
Neither did Treasury yields show much puff in a 916k NFP gain in March -- the 10y yield added just 4bp. The same for a 23-year high in ISM a couple of days later.
The 10y yield stands at 1.66%, 12bp below its Mar. 30 peak.