CSC: Market Sentiment Is Main Cause of Recent Bond Market Volatility

CSC's framing matters because it pins the move on sentiment rather than fundamentals or policy, implying the volatility is more about positioning and cross-asset flows than any change in the macro backdrop. That shifts the focus to equity risk appetite and central bank liquidity operations as the near-term swing factors for long-end bonds. Whether the sentiment-driven rally proves durable without fundamental support is the open question, and the behavior of the 10-year yield around the level CSC flags is the clearest gauge of whether that sentiment is holding.