The Fed has spoken but right now, what is moving bonds may have a German accent. That's because bond yields outside the United States may be putting a lid on how high American rates go.
On Wednesday, the U.S. Treasury 10-year note saw its yield move above 2 percent for the first time since early March despite the widely held notion that the Federal Reserve may wait until later this year before it starts raising rates.
Even so, there are many market participants who are instead looking for rates to fall much lower.
"If you look at the sentiment regarding bonds, it has become much more optimistic versus to where it was 12 to 15 months ago," said Ari Wald, head of technical analysis at Oppenheimer & Co. "You have a lot more calls for 1 percent" yields on the U.S. 10-year note.