Near Term Trend: Negative
Friday’s Close: 130’130 Yield: 1.68%
UPDATE: Ten weeks ago we stated, “Volatility could contract but I would think the court of public opinion keeps yields under 1.75% for the next two months.
That is exactly how it played out- what now?
Two weeks ago we focused on 131’040, and stated, “A downside breach of that line could catapult yields well above 1.75%”. Last Tuesday the contract settled at 130’00 which should have been enough to enact more concerted selling. For the moment, it hasn’t happened but price action remains weak. Keep in mind, if Equities come under pressure- yields could drop.