Bond Yield Breakout

Long bonds were pummeled yesterday. Ten Year yields decisively broke thru resistance to levels not seen since 2014. This morning yields touched 3.2% before pulling back.

Elongating the time horizon indicates that the long term downtrend in T-note  yields has clearly been broken. A band of resistance rests above current levels in the 3.5-4.0% range.

One would think that it will take a while for yields to chew thru that overhead supply. If yields would happen to quickly push thru those, then that would be telling.

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