Thu Ha Chow 5.0 2 ideas

The 10-year US Treasury yield could rise and potentially touch 5% again as markets process the supply shock from the Iran conflict and the resulting inflationary pressures, even as recessionary fears loom. The shorter end of the curve is easier to position in, while the long end remains volatile.

The Bank of Japan is hampered by the energy shock and risks being behind the curve on inflation, which is driving fears of steepening in the Japanese Government Bond (JGB) yield curve. Robeco maintains a call on JGB steepening as a result.