10 year yield also higher.
The 30 year bond traded at a new day high at 3.1436% Last week, the high yield reached 3.1545%. A move above that would have traders looking toward the June 2015 high yield at 3.25%. The 30 year yield traded as low as 2.5197% on November 9th (after the election day results). That low stalled just ahead of the 200 day MA at the time. The move higher is 62 basis points. That is a big percentage change move off at 2.5197 level (25% increase).
The 10 year yield has also traded up to a new high yield for the day at 2.4434%. This note's yield reached a high of 2.49% last week - equal to the June 11, 2015 high at the same level. On the day after the November election, it's yield also bottomed near the 200 day MA line at 1.711% (the low was right at that level - see chart below). The yield is up about 73 basis points from that low level.
The bearish bond market has been pushed by hopes of more growth, more fiscal spending, higher inflation, potentially higher deficits, more Fed tightenings as a result of the Trump presidency. The technicals have also been supportive. Breaks above the high yield targets will only add to that trend. If it leads, the dollar will have room to roam. Key levels ahead.
