10-year Treasury revenue falls below 1.30%
The bond market continues to flash a warning sign to the rest of the market as we see ten-year yields fall below 1.30% to their lowest value since February.
Since the FOMC meeting in June, the withdrawal has been quite quick and remarkable, given that most people still think the Fed is slowly leaning towards a heel. As such, it is an ominous sign when compared to prospects.
The specs tell more about the story here, and the 200-day moving average @ 1.227% is the next baseline.
This raises so many questions about inflation and the Fed, and it is becoming increasingly difficult to ignore.
So far, the recent decline in yields is nerve-wracking as we see a greater risk-reducing tendency to start trading in higher European yen and penalize commodity currencies, with aussie and kiwi now leading to losses.