Treasury yields come under pressure in European trading
10-year Treasury yields fall by close to 5 bps to 1.25%
Risk aversion is the name of the game so far to start the new week and lower Treasury yields can arguably be a cause or by-product of such sentiment.
The brief retreat early last week proved to be nothing more than what the name suggests as the series of lower highs and lower lows continues for Treasury yields.
Right now, we're seeing yields fall under its 200-day moving average (blue line) and testing the low from earlier this month @ 1.25%.
A drop below that could see yields run towards the 50.0 retracement level @ 1.139% next.
There are no easy answers when it comes to what the bond market is telling us at the moment but whatever the case is, it is creating a sense of uneasiness and stirring up nerves across other asset classes as well - as seen over the past few weeks.