The next domino to fall?
On Monday, the big level to fall was 3% in 10-year yields. Today, it was 2.50% in 2-years. Next, the level to watch is 3.25% in 30-year bonds.
The 3.22%-3.25% zone has been a major area of resistance since 2015.
Technically, it might be the clearest and cleanest level of them all.
In all the excitement of the bond breakout, this chart is instructive because it also shows that we've been here before -- and much higher. Back in 2014, the long end flirted with 4%.
Back in those days, the market actually thought inflation could be a thing again. That was partly due to high commodity prices. If oil and other raw material prices start to rise back above $70, watch out for another run.
