Ten year yields at a crossroad
TNX (ten year yield) is sitting right at three month support, 3.78%, an area that has preceded equity rallies in Mid-May and mid-July. Is it going to happen again, or will this triple break? One thing is certain: any bounce above 3.8% has been met with takers and equity sellers. This is not surprising since it represents 50% Jan/Jun. A bond bid at these levels could take us down to 3.68%, which could coincide with an ES move to close the FOMC week gap (1249). If bonds drop some more from here, ES could drive up to 1285/1292, probably putting TNX around 3.85%. We are in daytrading mode.
This entry was posted
on Tuesday, August 26, 2008 at 8/26/2008 08:08:00 PM.
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