China’s 10-year Yield Bumping 4%

Jon Market Commentary, Technical Analysis

Even before President Trump’s Asia trip, Chinese 10-year sovereign bond yields have been pushing higher. And that means we should expect the same for US 10-year T-Note yields.
I wrote about this relationship back in May 2017, noting that a big spread between the yields in China and the US can mark an inflection point for US yields. To identify when the spread was getting to an actionable point, I used 50-2 Bollinger Bands. That designation means that the bands are set 2 standard deviations above and below a 50-day moving average. I have left that moving average off the chart just to help reduce visual clutter.

This post was published at FinancialSense on 11/16/2017.