TNX 10 T-Bill Yield (TNX)

[ITMS]

The 10-Year Bond Yield Is Telling You Everything You Need To Know

Bond yields on the 10-year U.S. Treasury Note were as low as 2.356% on March 27, 2019. At that time, the leading financial stocks such as JP Morgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC) and most other financial stocks started to move back to the upside after a sharp five day decline that started on March 19, 2019. By now, every trader and investor knows that the stock market cannot really have a sustained rally without the leading financial stocks participating. Currently, the yield on the 10-year U.S. Treasury Note is around 2.55%. So simply put, yields have jumped up by just 20.0 basis points. That is not a big surge at all, but it has helped out the financial stocks and has given confidence back to the marketplace.

It looks like the 10-year U.S. Treasury Note yield found support at the 200-week moving average on March 26, 2019. This is certainly the key level that traders must now watch. If yields start to fall again on the 10-year U.S. Treasury Note it could be problematic for the current rally. Should yields decline below that important pivot low at 2.356% then it will likely bring some serious fear into the financial stocks again and possibly the entire stock market. At this time, the next important resistance level for bond yields will be around the 2.65% area. Right now, the 10-Year Bond Yield is telling you everything you need to know.




Nick Santiago
InTheMoneyStocks