Ten Year Yields Break Higher

When explanations make no sense
When every answer's wrong
You're fighting with less confidence
All expectations gone
--Swing Out Sister

Ten year yields staged a picture perfect breakout yesterday following a textbook cup and handle set up.

Today, T-notes rallied hard early in the day and for while it appeared that yesterday's move was a head fake. Instead, govies sold during the day and yields recovered most of the earlier session losses. This suggests that the path of least resistance remains higher.

Long bond yields have now nearly doubled from their March lows. The yield on the 10 yr note is just shy of 3%.

From a market perspective, this chart may currently be the most important one on the planet.

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