The global bond rout intensified Monday, with a gauge of Treasuries volatility surging to the highest since February, on expectations that President-elect Donald Trump will increase government spending to boost economic growth and stoke inflation.
The yield on the benchmark 10-year note climbed to 2.26 percent, the highest closing level since Jan. 1. See graph below.
The selloff on Trump’s election last week wiped a record $1.2 trillion off the value of bonds around the world as investors speculated the Republican would pursue stimulative fiscal policies.
Technical indicators such as the RSI are signaling the Treasuries selloff may have gone too far, too fast.
I see opportunity… I am buying some $TLT calls today for a short-term bounce.