Key Development In Bonds
Dave’s colleague Bo Harvey
will be writing today’s piece.
A key development last week was
the breaking of a downtrend line in ten-year yields ($TNX.X) that dates back to
2000. Coincident with this the dollar continued to bounce, gathering support
off the rise in interest rate expectations that played out.
Continue to keep an eye on the ten-year yields;
while yields have gotten pretty overbought (i.e., bonds have gotten
oversold—