We continue to anticipate a broadly sideways trend this week although that expectations is being put to the test in early trading.  Yields in the longer end of the curve hit more long-term highs this morning, and not in response to any especially compelling data or events. Weakness was generalized in the overnight session, and not much better in early domestic trading. 

European bond markets pushed the pace of weakness after the EU open.  This coincided with some economic data that was only slightly stronger than expected as well as some ECB comments that were arguably not too 20230925 open.png

One could argue that Fed comments on an utter commitment to the 2% inflation target added pressure, but it's just as easy to argue that selling remained generalized at home as well.  This speaks to an ongoing process of capitulation and "repricing" that could continue to test the expected sideways vibes ahead of next week's top tier data.