US10Y — Fundamental Analysis

Analysis date: 2026-03-13

Influence Weights

entitytypeweightbasisconfidencelastUpdatedreferences
EV007event25%Just released today; core PCE is the Fed's preferred inflation gauge; 3.0% beat vs 2.8% expected directly impacts Fed policy expectations and real yield calculations. This is the dominant near-term driver.high2026-03-13EV007,SF010,SF011,SF012
EV008event20%Ongoing supply disruption keeping Brent at $101; adds to inflation expectations and reduces bond demand via negative real return impact. Duration uncertain (2-4 weeks to war end) but immediate price action significant.high2026-03-13EV008,SF013,SF014,SF015
EV010event15%Largest job loss since pandemic creates competing safe haven bid; however, stagflation narrative (weak growth + inflation) currently tips toward inflation concern. Labor weakness provides floor to yield upside.high2026-03-13EV010,SF016,SF017,SF018
EV002event12%Direct evidence of weak demand for Treasury supply at current yields; signals institutional reluctance and supply-demand imbalance. Recent and directly relevant to price discovery.high2026-03-13EV002,SF004,SF005
EV001event10%Structural factor creating persistent supply overhang; however, well-known and partially priced. Weight reflects ongoing but not acute influence.high2026-03-13EV001,SF001,SF002,SF003
EV005event8%Reflects current consensus view embedded in prices; marginal influence as view shifts. Important for anchoring expectations but not active catalyst.high2026-03-13EV005,SF019,SF020
EV003event5%Ongoing withdrawal of major buyer; gradual and mechanical. Low weight because well-anticipated and steady.high2026-03-13EV003,SF006,SF007
EV004event3%Forward-looking factor; May 2026 transition. Currently low weight but could increase as confirmation hearings approach.medium2026-03-13EV004,SF008,SF009
EV012event2%Backward-looking data; already reflected in market. Minor safe haven support.medium2026-03-13EV012

Synthesis

FieldValue
Overall BiasBullish for yields (bearish for bond prices)
ConfidenceMedium
Time Horizon1-2 weeks (through FOMC Mar 18-19)
Key DriverEV007: Sticky inflation (PCE 3.0%) compounded by EV008: oil shock
Key RiskEV010: Labor market deterioration could trigger safe haven bid, capping yields

Key Drivers

rankidnametypewhy
1EV007Sticky inflation — PCE core at 3.0% YoYunified-event25%% influence weight. Just released today; core PCE is the Fed's preferred inflation gauge; 3.0% beat vs 2.8% expected directly impacts Fed policy expectations and real yield calculations. This is the dominant near-term dr
2EV008Oil shock from Iran/Hormuz closureunified-event20%% influence weight. Ongoing supply disruption keeping Brent at $101; adds to inflation expectations and reduces bond demand via negative real return impact. Duration uncertain (2-4 weeks to war end) but immediate price a
3EV010NFP -92K massive missunified-event15%% influence weight. Largest job loss since pandemic creates competing safe haven bid; however, stagflation narrative (weak growth + inflation) currently tips toward inflation concern. Labor weakness provides floor to yie
4EV00220-year auction tail in late Februaryunified-event12%% influence weight. Direct evidence of weak demand for Treasury supply at current yields; signals institutional reluctance and supply-demand imbalance. Recent and directly relevant to price discovery.
5EV001Treasury issuance pressure from fiscal deficitsunified-event10%% influence weight. Structural factor creating persistent supply overhang; however, well-known and partially priced. Weight reflects ongoing but not acute influence.

Scenarios

scenarioprobabilitypriceTargetkeyAssumptionkeyEvents
Base: Yields grind higher55%-FOMC holds hawkish; oil shock persists through Mar; labor data mixedEV007,EV008,EV002,EV005
Bull (for yields): Stagflation panic25%-Oil spikes further or Hormuz closure extends; March FOMC hawkish surprise on dot plot; next auction also tailsEV008,EV007,EV002
Bear (for yields): Recession bid20%-Labor data deteriorates further; crisis escalation triggers safe haven bid; war ends rapidly and oil collapsesEV010,EV011,EV012,EV014

Risks to View

idrisktriggerwouldChangeBiasTomonitoringSignal
R001Rapid labor deteriorationWeekly claims surge, next NFP deeply negativebearish (yields falling)Initial claims above 250K; next NFP negative again
R002Oil shock resolutionHormuz reopens, war ends, Brent below $85neutralIEA/shipping confirm safe passage; Brent sustained under $90
R003BoJ intervention selling TreasuriesUSD/JPY breaks 160, MoF confirms interventionbullish intensifiesUSD/JPY above 160; MoF verbal warnings escalate
R004FOMC dovish surpriseDot plot shows 2+ cuts; Powell emphasizes labor riskbearishSEP median dots shift down; statement language softens
R005Foreign central bank demand collapseChina or Japan large-scale sellingbullish intensifiesTIC data shows outflows; auction foreign participation drops

Monitoring Priorities

priorityiditemcheckFrequencynextChecktriggerCondition
1MP001FOMC meeting Mar 18-19event-drivenMar 19 2026Dot plot, SEP projections, Powell presser
2MP002Oil price / Hormuz statusdailyMar 14 2026Brent sustained above $105 or below $90
3MP003Weekly jobless claimsweeklyMar 13 2026 (today)Claims above 250K signals acceleration
4MP00410Y / 20Y / 30Y auction resultsevent-drivenNext auction dateTail size, bid-to-cover ratio
5MP005USD/JPY intervention riskdailyMar 14 2026USD/JPY above 160; MoF verbal intervention
6MP006War ending signalsdailyMar 14 2026Iran ceasefire announcement; Hormuz demining