In light of the events in the FIXED income world
We need to reset our concept of possible lows in Bonds
today's lows are
The corresponding APs
TNX 3.05 first Decennial low , 2.51 First ALAP and 2.05 Second Decennial low AP
TYX 3.50 Second ALAP, 3.14 Third ALAP and 3.05 Decennial
Now, we are still at a support here, but any significant lows below these will call the next set of APs to come into support role. Frankly, it is hard to tell if these levels hold. TYX has bounced pretty nice from this 3.50 level, but the TNX has gone through too much( almost). So, it is a trade time to feel this spot out. Considering the markets moved higher today. Only explanation of the Bonds Moving higher is that Money confiscated from us is used to buy the BONDS by our own government. It matters none though for our purposes. Fact is we are where we are. Considering where the stocks market is, perhaps the bonds are anticipating another reasonably steep decline coming? It is all possible, that is what makes the need for a trader even when one thinks we are dealing with the Longer Term Asset Allocation. All Long Terms start from the short term. I will take a deeper look and report if there are any timing reasons for the Rates to reverse here.