Message from US 10 Year Bond Yield

Cinvalo

Cinvalo

Member
The US 10 Year Bond Yield is a very important indicator that tells us about the sentiment of the equity market. Interesting enough, it has some correlation with the crypto market as well.
I spot some correlation between BTC and the US10Y. And this correlation was playing out perfectly until early this year.
I also spot a bearish divergence in the US 10 Year Bond Yield chart. I think it is going to play a role in determining what is ahead of us in the weeks or months ahead...


 
Bond yields are poor indicators of economic sentiment as the market is not free. Buyers of government securities do so largely because they’re forced by regulatory burden to hold bonds.
 
Keep US10Y on the watchlist. Debt is the driver of all. If the US10Y moves gets rejected, it is a good sign. It is telling us the market is fearful, ppl are moving back to bond to seek safety.
It is a good sign becasue it is confirming the recent sell off in equity and crypto is not a melt down, and this is just another one of those "fear trade" in 2019 and March 2020.
However, if we see cash bleed out of the debt market, and we see US10Y spikes to 2.5% ...3% or even higher, becareful.
That means we are pretty much it.
It is the end game.
 
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