CHART OF THE DAY: BOND PANIC?

by stockboardasset
Glancing at the chartbook in the overnight session, we have stumbled across a bottom bump and run formation reversal in the UST10Y. The long-term trend in bonds could be reversing with the linear supply line upside break. Earlier this month, the BOJ made comments towards tapering, and shortly after China told the world they were not going to be U.S. debt. Since, the UST10Y has been rising and has violated the 2.64 neckline. On top of foreign market generated information, the Fed raising rates coupled with balance sheet roll-off could be even more pressure on forcing rates higher. Earlier this month, Bill Gross called the bond bear market and Jeff Gundlach stresses not good thing will happen over 2.64 on the benchmark. In our opinion, the benchmark moving higher could be bad news high leveraged economy.


Could the next move in the UST10Y be 3 to 3.30%?

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