Everyone is talking about about the falling yield on the 10-Year U.S. Treasury Note. Today that yield is around 2.395%. Yesterday, the 10-year yield hit the 200-week moving average, which looks to be a critical support level. Trader and investors should note that the 10-year yield is in a confirmed down-trend on the daily chart. The yield has declined below it's 200- and 50-day moving averages. This is a very weak technical formation and generally a sign that bond yields will decline further in the next few months.
What To Expect
If yields break below this important 200-week moving average it will generally signal a move down to the 2% area. If this happens, the fed funds rate (2.25 - 2.50%) would be above the 10-year yield, which is why the Federal Reserve would likely lower the fed funds rate in the second half of 2019.
