Today may turn out to be one of the last few bits of weakness before bond markets finally put their foot down and re-establish the previous bullishness that has recently been so familiar. Or it may be a trap. Admittedly, we're more concerned with guarding against the possibility that it's a trap than making the right guess about what's happening. On the topic of such guesses, it continues to make sense from a fundamental standpoint that Europe is not fixed and because of that, weakness in bond markets is more likely to be temporary.
That said, there are two counterpoints worth considering. First is that we won't know that Europe is fixed until after it has already proven itself to be. At face value, recent ECB news doesn't seem like it will stand out as THE defining transition from failing to recovering, but perhaps combined with events in the near future, it could turn out to be. That's a long shot, and too speculative for us to get into. On the more objective side, we have charts.
The following 3-in-1 chart is dedicated to the aforementioned notion of "guarding against the possibility" that we're in somewhat of a persistent pattern of weakness, if for no other reason than it seems to be possible based on the charts and also because we've recently enjoyed such an uncanny, stable period of positivity for rates. This isn't meant to change your mind on what to do with your pipeline necessarily, but merely to help ground your thought process in case you weren't already considering "stuff like this:"
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