Near Term Trend: Positive to Neutral
Friday’s Close: 132’04 (- 3/32) Yield: 1.53%
UPDATE: Four weeks ago we stated, “I look for yields to remain under pressure 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.
We noted last week, the Bull Flag pattern was violated as prices traded below the support line- see chart.
However, it has not had an sharp adverse effect on Yields at this juncture.