U.S. Treasury Bond Yields Are Breaking Down Again

JC Parets
May 16, 2016

Last week I shared a chart with you guys where I purposely left out the ticker symbol and y axis. The reason I post these mystery charts every now and then is to eliminate any biases that we all have in these markets. This allows us to approach a market and focus only on the supply and demand dynamics in order to forget everything else.

The most recent Mystery Chart was the U.S. 10-year Note Yield upside down. Here is the actual chart where you can see yields approaching the apex of these two converging trendlines:

5-13-16 tnx

If yields are below the uptrend line from the 2012 lows, it's hard to be bearish towards U.S. Treasury Bonds. Remember, they move inversely.

This is a chart that I think we all need to be watching. If the stock market is going higher, I think we need to see yields at least hanging in there, if not rising. So far this appears to be a break of key support.

If you're a stock market bull, you do not want to see yields breaking to new lows. That's how I see it.

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Tags: $TNX $SPY $TLT

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