SPY Bonds are ripping. Called the bottom on my minds post on US10Y on Monday. Wish my callout for SPY was as accurate lol. Yields weren’t going to stay down forever with the data we’ve been seeing. Nonfarm Payrolls can push yields even higher tomorrow.
US10YSPXNAS100 If the US 10-year Treasury yield falls below 4.0%, it may indicate that the market is anticipating a recession. Conversely, if the market expects a rate cut, the 10-year yield would likely remain above 4.0%, suggesting a period of sideways trading. In this scenario, stocks, including the S&P 500, could move upwards.
There are equally valid reasons to be both bearish and bullish; therefore, avoid rigid positions if your convictions are uncertain.
US10Y Is down over 1% and looks like it will continue to move lower to at least the 0.618 retracement at 4.14%, which is down another 2%, before GDP. I expect Wednesday’s report to move yields higher and stocks lower. SPYQQQDXY tradingview.com/x/AoRwECZs
US10Y US 10Y Bonds: Stable income, low risk, and diversification benefits. Influenced by interest rates, inflation expectations, and global economic trends. Useful for yield curve analysis and duration management. US02YAU10YDE10YDE02Y