This chart shows the yields on the 10-year Treasury bond (click on the chart to enlarge it). The interesting feature of these yields is that more often than not they peak ahead of a near-term market top.
The reason I am showing this chart today is that bond yields have been rolling over possibly in response to weak economic news. Another interpretation could be that investors are moving capital from risk assets (stocks) to safe assets (Treasury bonds).
Are yields saying the market is close to near-term overbought conditions? If you read my previous posts you will probably guess my answer.
Time will tell...no doubt about it.
George Dagnino, PhD
The Peter Dag portfolio
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