In case you haven’t noticed, interest rates on longer-dated bonds have spiked globally over the last two weeks. At right is a table showing the current 10-year yield for the sovereign debt of Australia, the US, the UK, Canada, the Euro, and Japan. We also show the change in basis points over the last two weeks. As shown, yields have jumped sharply across the board, with the Euro 10-year yield spiking the most from 0.08% all the way up to 0.51%.
Below we provide one-year trading range charts for the 10-year yields shown in the table above. All of these countries have seen yields trade in steep downtrends over the last year. Most of these countries haven’t seen overbought levels in at least six months. The move recently, though, is certainly causing long-term downtrends to break, bringing out the “yields have bottomed”-callers in droves. We shall see.