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Assessment: Rough bond auction yesterday saw the 10 year Treasury yield spike from a low of 4.532% to a high of 4.728%. Might not seem like a lot, but that is a BIG move in a single day for yield. The spike in Treasuries then put pressure on the stock market. Why? Why trade the markets which are down to flat when you can get a “risk free” rate of 4.7% annually? It will continue to suck out money from the markets and cause issues for companies, especially tech stocks, who live on borrowing and can’t have high interest rates cutting into margins for all their funding activities.
SPY $430 held though, so even though it didn’t look good…and even though volume was higher on the selling, the bulls still have the ball.
Good luck in your trades!