The Federal Reserve is talking dovish and finally the bond market is listening…
but this may be a trap.
With inflation looking sticky and bond yields oversold, it could be time for interest rates to rise again.
We are living in a time period where the public news and markets are divergerging from private news and markets. This means it is even more important to focus on price action and analysis.
Note that the following MarketSurge charts are built with Investors Business Daily’s product suite.
I am an Investors Business Daily (IBD) partner and promote the use of their products. The entire platform offers a good mix of tools, education, and technical and fundamental data.
10-year treasury bond yield chart
Interest rates are oversold and may be nearing a bounce. Currently at 4.15%, yields could drop to 4.00% (strong support), but are likely to bounce soon. And considering that inflation is sticky and economic data soft but not recessionary (yet), we just might see a bounce.
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
