US 10 Year Treasury notes

Purely on price action it is possible that wave 2 is complete as a flat, 3-3-5 corrective pattern where wave C was smaller than wave A. The only reason people are bullish bonds right now is the overly large short position by traders in the bond market. Expecting a short squeeze even as the FED remains committed to raising rates. So if wave 3 down starts it would surprise people looking only at data. The daily momentum is back in sell mode so we should watch how far down bond prices and how high bond yields can go again. Maybe they will get support at the lower trendline of the bottoms and form a triangle before a rally. That is also possible.

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