Today’s announcement of a proposed major tax cut and last weekend’s French election “relief” has put the brakes on the Treasury rally. The 10 year is back up to 2.30% after hitting a recent high of 2.33% yesterday. The lack of specifics in the tax plan “tapped the brakes” on the sell off. Details on the plan and the likelihood of it passing will affect Treasury yields for the foreseeable future. stay tuned. By David R. Pascale, Jr. , Senior Vice President at George Smith Partners.
