Weekly Commentary: Putting the yield spike in perspective

We view the U.S. Treasury yield spike as resolving a disconnect between the powerful restart and lower yields in recent months, and stay tactically pro-risk. U.S. 10-year yields jumped to the highest level in three months. Markets are prone to volatility but ultimately we see yields rising gradually. Investors will focus on U.S. employment data especially as it is key to the Fed’s interest rate liftoff decision.