The 10-year yield on German bonds, known as Bunds, was 0.05 percentage point higher at just below 1% in overnight trading, having earlier shot as high as 1.05%.
As recently as mid-April, yields bottomed out at 0.05%.
U.S. Treasury bond rates are also up this morning. The US 10 year is trading at 2.47%, up .03 percent.
I have been warning in the EPJ Daily Alert that we are in the very early stage of a multi-year climb in interest rates. The idea that the Fed is going to somehow prevent this and keep rates near zero makes no sense. Markets are going to lead rates higher. The Fed will trail.