Near Term Trend: Neutral to Negative
Friday’s Close: 131’12 Yield: 1.63%
UPDATE: Nine weeks ago we stated, “I look for yields to remain under pressure. Volatility could contract but I would think the court of public opinion keeps yields under 1.75% for the next two months”.
Hence slightly more than two months later our prognostication was correct as the highest Yields traded were 1.63% this past Friday.
At this juncture, key support (131’01) at our trend line is in focus. A downside breach of that line could catapult yields well of 1.75%.