Last week the panic in Equities/VIX, now the final panic move in Rates. Disorderly and breaking all historic records (30yr Real < 0%, 2yr RSI 9). The 10yr chart projected to 0.883% and today's low was 0.9043. Maybe one more push but getting very very ripe. $TY_F $TLT pic.twitter.com/hZ2zKdSEZT
— Macro Charts (@MacroCharts) March 3, 2020
Today’s Chart of the Day was shared on Twitter by Macro Charts (@MacroCharts). It’s a daily bar chart of the US 10-year Treasury yield. In our Chart of the Day a couple of weeks ago, we highlighted the fact that the US 10-year Treasury Bond was attempting to break above a key resistance level, which we said would “likely send the yield on the 10-year to fresh all-time lows.” Sure enough, the 10-year Bond broke out above that resistance level, and the 10-year yield tumbled to record lows. Today, the yield on the 10-year fell below 1% for the first time ever. The speed at which yields have dropped over the past few days has been remarkable. In fact, this has been the largest 5-day decline for the 10-year yield going back to the start of our data in 1980. Macro Charts emphasizes that the move in yields is “breaking all historic records.” He adds that the 10-year yield is approaching his downside objective and suggests that yields could be due for some mean reversion or a bounce in the near-term.