The jury is still out, but the bond market manages to carve out price gains today despite US stocks hitting record highs. Some analysts say selling pressure may be easing for the bond market in the short term and that yields may be entering into a phrase of consolidation. The 10-year yield has been hovering around 2.3% this week which has attracted some buying interest. John Canavan, market analyst at Stone and McCarthy Research Associates, says there is room for some mean reversion in yields in the short-term, bringing the 10-year back to the 2.25%/2.20% area into year-end. But he says the yield still faces additional upside to the 2.50% area in the new year. The 10-year yield fell to 2.307% vs 2.335% Monday. The two-year yield hit 1.107% earlier in the session, the highest since 2010, but recently pulled back to 1.087% vs 1.084% Monday.
