The high inflation story is a quite new experience to everybody involved with the financial markets. Regarding the Fed, maybe the best they can aim for is -through their actions- normalize Treasury yields to a lower slope and level than the last two years, in a way like the chart below. For sure, the yields’ […]
10 year Treasury yields start causing some pain as they escaped to the upside the consolidation price channel of the last 2 months, which coincided with the strong stock market rally. Time will show whether testing the 3% yield is on the cards anytime soon. Disclaimer> This post is informational only. It is not trading […]
The renewed strength of long-end yields (bond weakness) -if sustained- may be acting as a harbinger to the economy that the worst is yet to be seen. The stock market rally is taken for what it is but the bonds are making a quite bold statement that there is some “confusion” in the financial markets. […]
The huge ongoing stock market rally started in mid-June, as the 10-year US yields topped (for the time being). In the last few sessions, the bond market is moving yields higher again, even little by little, as evidenced by the breakout of the downtrend line below. Time will show who will have the last say […]
Yesterday’s jump on the 30-year US Treasury yields (after a not good auction) is moving the long-end toward the all important 3,50% resistance level, with any implications that this would have to the rest of the markets. Disclaimer> This post is purely informational. It does not constitute a trading or investment advice. Financial markets are […]
After celebrating a brief “head and shoulders” bearish breakdown on the daily, the 10-year Treasury yield returned back above the all important neckline (around 2.65%). This is bond-negative and who knows whether it will be a harbinger of a stock market decline ahead. Disclaimer > This post is purely informational. It does not constitute a […]
The benchmark yield is balancing on long-term support. Is this because investors are not much afraid of inflation any more, thus trusting to the Fed? Or there is another recession in the horizon? Time will show. In any case, the 10-year bond will be something to keep on watching closely. Disclaimer> This is just an […]
Treasury yields are balancing on daily support, that is on the neckline of a bearish potential head & shoulders formation. In case of a break below, this would be good for Treasuries (remember the negative relationship between bond yield and price). Disclaimer > This post is for educational purposes only.