10-year Treasury yields are at their highest in over 5 weeks, operating near 4.16% now after a break of its 200-day transferring common. The surge greater in yields was an issue for markets earlier this week however it wasn’t the case in buying and selling yesterday.
US Treasury 10-year yields (%) day by day chart
The greenback ended up buying and selling extra sluggishly and equities raced greater as tech shares had been on the wheel, ignoring the motion within the bond market. However can broader markets actually try this for 2 days in a row?
There’s an outdated adage that reads the bond market is at all times proper. And that’s one thing to bear in mind when attempting to decipher the market strikes from yesterday.
To date right now, the greenback is as soon as once more somewhat extra blended however USD/JPY nonetheless has the makings of a potential run towards 150.00 next. And with the bond market aiding with that, it ought to hold the greenback underpinned if merchants follow the present momentum.
As for shares, the S&P 500 is as soon as once more closing in on the 4,800 mark. That will likely be a pivotal resistance level to look at on a break or rejection of the important thing degree.
