Near Term Trend: Neutral
Friday’s Close: 129’155 (- 4) Yield: 1.89%
UPDATE: Four and a half weeks ago, we alerted our readers, “The March contract traded as low as 128’160 (a mere 4 points of our downside objective). Once the contract hit 128’16, it formed a key upside reversal (see chart) within the same trading session”. Since that time, the 10- Year rallied over 3 full points (Yield falling over 20 BP’s), as a result of the correlation between Equites & Treasury remaining fairly tight. However, this past week the correlation uncoupled and became inverse (yields jumped 14 Bps). If stocks correct yields fall; for now price pressure in 10-year.