My guess is bond yields are heading much lower between now and September 11.
30-Year Long Bond Technical Position
Technically speaking, the long bond yield is right on support. Typically this is a spot where one would expect yields to bounce.
However, there have been four bounces off this level since late last year. I expect support to crumble in the wake of deteriorating economic data.
10-Year US Treasury Note Yield
10-year US Treasury Note Technical Position
The technical pattens of the 10-year Treasury note is the same as the 30-year long bond. The only difference is yields and support levels are lower on the 10-year note.
Fundamentally Speaking
Fundamentally, support levels will break sooner or later and I expect sooner, as in tomorrow.
A stronger reaction, and one I am…
