The ten year treasury nudging 2% has caused a pause in credit, especially with the lower coupons. Not a fundamental event but sorta like waking up on the last two days of a great vacation and knowing it is almost over and time to pack the bags. The reason that it is not fundamental is because we have QE intact and this will continue to inflate the markets. But in the meantime, this pause in a tired market will cause ETF sellers to line up their withdrawals and cause short-term, deepening sales — all of which are good for opportunistic buyers who have bought into the QE-supported economic strength.
Credit weakness in the market