With Treasury Bonds getting clobbered over the last week, yields have been on fire. This morning, $TNX broke through the 50 and 200 day moving averages like they weren’t even there. Trouble is now approaching around this $32 level. The market has memory here from key support in March as well as all of the churning that took place here throughout the month of May. The 38.2% Fibonacci Retracement from the February Highs to recent lows also comes into play at these levels.
I would not be surprised to see a little consolidation around here to allow the 50 day to turn around and head higher. Two positives here for Treasury Yields are the fact that the longer term 200 day moving average is already upward-sloping and a Bullish Divergence in RSI throughout June originally sparked this rally. The S&P500 has been positively correlated with yields, so if you’re trading stocks, you definitely want to watch both the price of the bonds and their yields.