It’s a bullish looking bounce pattern for 7-10 year bonds, even as Anthony noted that the Treasury was selling $28B in 10yr Notes on Wednesday. A bounce in bonds, as the Fed ever so slowly matures its way to QT and the Treasury makes its biggest 10yr auction ever would fit well with a market liquidity reduction. In other words, money out of stocks and into bonds. As we have been noting, long-term bonds have been bullish on a contrarian sentiment basis. Let’s see if the pattern activates above the July highs.
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