If This Level Breaks, 10-Year Yields Will Spike
InTheMoneyStocks.com | May 22, 2018 01:48PM ET
10-year bond yields are hammering on the 3.10% level, which was the pivot high from 2013 and is current resistance. However, if the 10-year yield breaks over 3.10%, there is no resistance until 3.50%, then 4.05%. While to average investors it may mean little, to smart traders this is huge.h3 Risky Business/h3
The stock market could literally lose 25% of its value if rates spike to 4.05% as big money runs for yields versus the risk of stocks. In addition, U.S. debt payments will spike, likely causing an S&P 500 warning and possible default. The Federal Reserve has put us in a corner where easy/cheap money is the only way to survive. This is a major catastrophe waiting to happen. In my opinion, it's not IF rates jump to 3.50 and 4.05%, it's when?
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