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Updated 4:00am ET June 12, 2013

Treasuries yields continue to climb with longer dated yields now 60 bps off their May lows. The benchmark 10-yr yield hit a 14-month high of 2.290% amid the recent selloff, but has slipped back down into the 2.200% region. Near-term support for the 10-yr rests in the 2.150% area with a breakdown likely leading to a move into the 2.075% level.

The run up in Treasury yields has been accompanied by an even bigger surge in the high yield space. After slipping below 5.00% for the first time ever in mid-May, the yield on the BofAML Master II High Yield Index has catapulted above 6.25%, leading to the highest print in more than six months. Participants are now watching the 6.50% area as a move through there sets up the potential for even more upside. The aggressive selling in the high yield space has led to the spread between it and the 10-yr widening to 405 bps after bottoming at 314 bps.

Meanwhile, yields on the safest of paper remain on the upswing with the BofAML U.S. Corporates (7-10Y) jumping to an 18-month high of 2.79%. This marks a 91 bp surge off the record low that was hit in December 2012.