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31 Dec 2014
Benchmark 10 year yield gives back all of its Q3 GDP upside – MPTrader
FXStreet (Barcelona) - Mike Paulenoff of MPTrader notes that the US benchmark 10 year yield has slumped down to 2.17% after December 24th peak at 2.31%.
Key Quotes
“U.S. benchmark 10-year Yield continues to stair-step to the downside in the days following the Dec 23 upward revision in US Q3 GDP.”
“Yield peaked on Dec 24 at 2.31%, but has since slinked its way back down to 2.17%. Huh? Strange action in the instrument that is supposedly a sensitive barometer of economic growth. Then again, maybe Yield is telling us the truth—that US economic growth of 5% either is a mirage, or represents a brief spurt that already passed?”
“Whatever the case, all of the abanksction in Yield above 2.23% last week now looks like a nasty Bull Trap ahead of the resumption of dominant downtrend weakness.”
Key Quotes
“U.S. benchmark 10-year Yield continues to stair-step to the downside in the days following the Dec 23 upward revision in US Q3 GDP.”
“Yield peaked on Dec 24 at 2.31%, but has since slinked its way back down to 2.17%. Huh? Strange action in the instrument that is supposedly a sensitive barometer of economic growth. Then again, maybe Yield is telling us the truth—that US economic growth of 5% either is a mirage, or represents a brief spurt that already passed?”
“Whatever the case, all of the abanksction in Yield above 2.23% last week now looks like a nasty Bull Trap ahead of the resumption of dominant downtrend weakness.”