• The highest US yields since November are beginning to attract some opportunistic buyers, even as negative sentiment remains firmly entrenched throughout the Treasury bond market.
• The latest client survey from JPMorgan Chase & Co. showed that investors were net long on Treasuries by the most in three weeks as of Monday. Meanwhile, in the options market, traders appeared biased toward unwinding at least some of their bearish positions, potentially locking in profits as US two-year yields surged to as high as 5%. Simmering Middle East tensions may also be providing some support for the safety of government bonds — but not enough to spark a rebound.