Treasury yields jump on waning Brexit fears

Treasury prices and prices of government bond yields across the globe fell on Monday as risk assets rallied on waning Brexit fears.

The benchmark 10-year treasury yield rose more than five basis points to 1.67%; highest since June 9. Yield had closed at 1.61% on Friday, thus making Monday’s jump as the largest single day rise since May 18. The two-year yield, which mimics short-term rate hike bets, also jumped to 0.733%; it’s highest since June 10.

Across the pond, German 10-year bund yield added 4 points and rose to -0.06%. The sell-off in safe haven Treasuries and German bund prices was triggered by weekend polls released in the UK which showed a shift in sentiment away from Brexit.

The 10-year Treasury yield currently trades around 1.665%. The focus today is on Yellen testimony, which starts later today. Brexit related news flow could affect demand for treasuries as well.