As one well-known trader noted - referring to the current move in the US Treasury complex - "rubber, meet road."With the death cross (50DMA crossing below the 200DMA) for bond yields and a crucial trendline having been tested now numerous times (building up its importance), it seems we are about to find out just how much "growth" stocks really do reflect the reality of 'ungrowth' in bonds and vice versa. A break of 2.64% in 10Y yield could be a critical floodgate the Fed does not want opened. As BofAML's Macneil Curry warns, 10Y Treasury bears beware, a break below this level opens up a drop to 2.399%.
A close-up on the trends (and death cross)...
As BofAML's Macneil Curry warns US Treasury Bears Beware...
US 10yr yields are approaching PIVOTAL resistance at 2.629%/2.608%. Against here we remain bearish 10s.
HOWEVER, a break below would say we are wrong, exposing the Oct'13 low and multi-year pivot zone between 2.469%/2.399%
And he is fearful that USDJPY is about to break support also