US 10-year yields held January lows
The main chart I was watching heading into this week was Treasury note yields. They finished Friday on the brink of a break below 2.30%, which was the January low.
Instead of breaking, bond yields have jumped 5 bps today in an attempt to form a bottom.
There is a huge push-and-pull ongoing with bonds, stocks and the dollar sending wildly different signals. Bond volatility and other fear signals have been rising while stock market optimism is hitting generational lows.
With such an action packed calendar this month and the start of a new month, you can't help but expect some clarity at some point this week.
One guy who expects Treasury yields to break lower is bond king Jeff Gundlach.
"There is a stealth flight to safety going on. German bond yields are leading the way down," Gundlach said in emailed comments to Reuters Friday. "Gold is rising. Speculators remain massively short bonds and the market is going to squeeze them out."
