Chart Of The Day

Today's theme is the U.S. Bond market. Posts below reveal news that the Treasury will auction off a record $134 billion in debt next week. Also below is a story how the Chinese not only are not buyers but are vnet sellers as the "show concern" about U.S. monetary policies. The chart above is the US 10 year bond. As can be plainly seen the prices has been in a downtreand (an interest rates are rising as a result). The 50 day moving average as crossed below the 200 day moving average. In technical circles this is known as the "death cross", a very negative sign and point to much lower prices and higher interest rates. We are seeing death crosses in the 30 year, 5 year and the 2 year as well. The 10 year is most important since mortgages and other loans are tied to it's interest rate.-Lou