The bond market the best barometer of the state of the economy and 10-year yields aren’t sending the same signals as the record-breaking stock market. When US growth truly turns higher and a path for the Fed to hike rates emerges, 10-years will be trading near 3%, a long ways from today’s 2.67%.
The technical level I’m watch for a first sign of a breakout is 2.79-2.80%.
US 10 year yields
I get the sense the bond market is reluctant to sing an upbeat song until Friday’s non-farm payrolls report, and only if it’s upbeat.
