Sell-Off Finally Showing Signs of Fatigue
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Many times, we can’t categorize a week of bond trading without seeing how the subsequent week begins. With that in mind, last week is increasingly looking like it marked a transition from focused selling pressure to sideways indecision. By Thursday and Friday, yields had topped out at 3.978 (same exact level, both days). Incidentally, that’s exactly where this morning’s ceiling had been before weaker Durable Goods data sparked a small amount of buying. This isn’t a magical barrier, but it is a good level to watch for signs of further support or evidence that the broader sell-off is resuming.