10 year yields rise 10bps as Powell announces 25bps cut. We’ve seen this movie before. At this rate Trump will force Fed Funds to 1% and 10 years will be at 6%. At least the banks would love it.
A break of trend resistance at 4.07% will meet more resistances as yield could work it’s way to the top of the channel at 4.5%.
If bonds suddenly got bullish a rally as low at 3.77%, where the 2 trend channels meet, would be massive support. Risk-reward says short bonds, go long yield on an immediate break and confirmation above 4.07%.