10-year notes yields surge due to global sell-off in bond markets

The global sell-off in bond markets has resumed, as yields surge on 10-year notes in Italy, Spain, Portugal and Germany. With the full picture still far from clear, strategists and analysts have been hard pressed to pinpoint a specific reason for the shift over the past two weeks. Markets will now focus on rates today and several U.S. Treasury auctions this week to see if Monday's high yields were just the starting point for a new trading range. 10-year Bund yields +9 bps to 0.68%; U.S. 10-year +12 bps to 2.27%.