Watch Treasuries for signs of the next Equity selloff
The inverse correlation of Stocks and Bonds have been quite telling in the recent months of equity volatility.
The 10Y yield went from 3.25% in early Nov to lows of 2.55% as participants flew to safety in treasuries.
In the last couple weeks as equities have recovered from the Dec 24th meltdown, treasuries have been sold with yields resting now around 2.75-2.8%.
I am looking to see demand for treasuries as the major Equity indices test overhead resistance.
After a 14% rally on the S&P in a matter of a month a pullback looks likely.
If we see 10Y yields once again trending down expect blood for risk assets.
Cheers
The 10Y yield went from 3.25% in early Nov to lows of 2.55% as participants flew to safety in treasuries.
In the last couple weeks as equities have recovered from the Dec 24th meltdown, treasuries have been sold with yields resting now around 2.75-2.8%.
I am looking to see demand for treasuries as the major Equity indices test overhead resistance.
After a 14% rally on the S&P in a matter of a month a pullback looks likely.
If we see 10Y yields once again trending down expect blood for risk assets.
Cheers
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