The breakout has faded
Yesterday's 10-year auction was soft but that hasn't dissuaded bond buyers today.
10-year Treasury yields are down 3.5 bps to 0.761% in the third day of declines after hitting 0.9555% on Friday.
This looks like a classic breakout-and-retest from a range. The 0.56%-0.78% range prevailed in April and May before the breakout last week.
The x-factor here is the Fed and if they don't offer enough reassurances about bond buying and keeping rates pinned then we might see some kicking and screaming.
