Courtesy of Chris Grafyon
US Ten Year yield’s 80 day cycle likely just peaked and has retreated hard, which is why we are seeing uplift in equity index risk.
However, the peak was very right translated (late) and points to the underlying trend in rates still being up.
Additionally, we are very close to a meaningful cycle trough zone, with the 80 day cycle trough (light blue circle and whiskers at bottom of chart) from next week and extending to the second week of September in terms of range.
We are not looking for a significant pullback and expect yields to rally again.
US Ten Year yield’s 80 day cycle likely just peaked and has retreated hard, which is why we are seeing uplift in equity index risk.
However, the peak was very right translated (late) and points to the underlying trend in rates still being up.
Additionally, we are very close to a meaningful cycle trough zone, with the 80 day cycle trough (light blue circle and whiskers at bottom of chart) from next week and extending to the second week of September in terms of range.
We are not looking for a significant pullback and expect yields to rally again.
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