There are good reasons why higher bond yields are here to stay, this strategist says

Investors are requiring higher yields for long-duration bonds due to weaker demand, heavier new supply, and heightened policy uncertainty. The strategist frames the move as more of a positioning/flow overhang than an immediate fundamentals shock, but it remains a headwind for long-end bond prices.

Analysis

Investors are requiring higher yields for long-duration bonds due to weaker demand, heavier new supply, and heightened policy uncertainty. The strategist frames the move as more of a positioning/flow overhang than an immediate fundamentals shock, but it remains a headwind for long-end bond prices.