Bond Bounce: Is the Yield Spike Overdone?

Overshooting yields?

The surge in the 10 year has been rather extreme. Yes, we are above the negative trend line, but we have moved far...and fast. There is some short term mean reversion logic to yields, and RSI has been overbought for weeks. We are not calling the big top in yields here (we did call the most recent lows here), but rates need a pause at these levels, irrespective of Trump.