A Favorable Morning for the 3 Amigos of the Macro

Long-term bond yields are rising this morning, and you will notice, the 2yr is rising more than the 30yr. So not only is this a boost for the ‘nominal yields rising’ Amigo, it is also a boost for the ‘yield curve flattening’ Amigo. The 3rd Amigo? Why, he is ‘stocks vs. gold’ and he is riding hard again this morning.

Here are US yields and a couple of associated bonds.

Amigo #1: Here’s the weekly view of the 10yr yield. We are looking for 2.9%.

10yr

Amigo #2: Here is the big picture yield curve. We are looking for the trend line, flat or inversion.

Amigo #3: And finally, stocks (SPX) vs. gold. We are seeking the lateral resistance area and a 38% Fib retrace.

Bottom Line

The confluence of the above can be looked at as bullish for as long as they seek their destinations.

The confluence of the above will be viewed as bearish – very bearish – when target acquisitions are at hand.

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