Ten Year Bond Yields

If the ten year continues to rise (that is yields drop) why are equities rising. The low made in domestic equities was in august yet we made new highs in the Ten Year. Does this mean we are going to spike down to correct the divergence? Is this more correlated to Europe at present?

Regards

 

Why not? It's not like this negative correlation is some sort of natural law.

 

The relationship between equities and bonds is indirect at best. There is so much interference in the bond market right now, that I wouldn't for a second pretend to know what that relationship will be in the coming months.

{edit} IMO, most of the retail money that would go to bonds, is already there and will probably stay there until it is obvious that we are out of the woods.

 

OK. Fair enough. but I think they are hinting at further downside.

 

That didn't take long. Looks like we are headed down again.....

 

Market immediately turned around again and rallied for 2 days. It makes you never let your guard down because Mr. Market is always right.

I have been swinging multi-days a lot less as the turnarounds can be fierce. Up into Opex? Then next week--down?

GLTA Traders

 

1. In case you missed it
   
   
   
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      Knowledge Leaders‏@KLCapital Apr 12
      
   
   Bond Yields Break Below Important Support as Econ Data Notches South http://blog.knowledgeleaderscapital.com/?p=12987
   
   
   
   
   
   0 replies 3 retweets 7 likes