Near Term Trend: Negative
Friday’s Close: 124’070 Yield: 2.47%
UPDATE: Eight weeks ago when yields were trading 2.35%, we stated, “Near term - Yields start to become extended (overbought) within the next 10-15 basis points (2.50%)”. Yields traded up to 2.61%, but it lasted a Nano- second. In light of that four weeks ago we stated, “The wild card- if Equities take a hit (near term profit taking) – the T-Note futures could rally and an initial Yield retrace to 2.35 would play out”.
Last week Yields traded to 2.33% but bounced on Friday. However, Equities still hang in there.
NOTE: Overall our resistance at 125’04 holds.