Near Term Trend: Positive to Neutral
Friday’s Close: 131’28 (- 18/32) Yield: 1.55%
UPDATE: Three weeks ago we stated, “I look for yields to remain under pressure for the next week until the dust somewhat settles on the Brexit situation.
Volatility could contract but I would think the court of public opinion keeps yields under 1.75% for the next two months”. We still adhere to that scenario, and thus far, that is exactly how this continues to play out. However, yields did jump 18 basis points this past week on the heels of the acceleration in Equities.
In addition, the Bull Flag pattern was violated as prices traded below the support line- see chart.