10-Year Treasury Yield Points Lower
Mike Paulenoff | May 31, 2015 12:25AM ET
This past week, the U.S. 10-Year yield broke and sustained below key support at 2.18% - 2.15%, and continued lower Friday in reaction to deteriorating economic data.
The break of key support signaled to me that there is an increasing likelihood that all of the action from the January low at 1.64% to the May high at 2.36% represented a completed counter-trend correction.
If accurate, it means that current weakness initiated a new downleg within the dominant (34-year) downtrend, and is pointed next to 2.03% - 1.95%.
If I was refinancing my mortgage, I would give the benefit of the doubt to waiting a while longer prior to locking in my new rate.
That said, be advised that this coming Friday morning we get the next set of monthly Employment Data, which will move the market. A weak data set could be catalyst for downside acceleration below 2.00%.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.