US 10 y yields

The breakout in bond yields isn't exactly going to plan.

The ugly turn in the risk trade is hitting hard with 10-year yields now down 8 basis points to 1.749%. Importantly, that's below the old 1.77% breakout line and if we close down here it will invalidate the breakout on the weekly candle.

This has turned into a classic flight to safety with US equities crumbling. The S&P 500 is down 64 points to 4419 and the Nasdaq 2.3% lower.

This comes in the shadow of the Fed decision next week and I don't think Powell is going to toss out a lifeline.