Menu Close

Treasury Buying Panic Reaches Major Inflection Point, Whither Yields Go, So Too Stocks

The Treasury had a heavy calendar last week. The market will face a big Treasury settlement this Thursday as a result. The need to pay for that supply will play a role in the market probably on Tuesday, Wednesday, and possibly Thursday, or with a delayed reaction on Friday. However, balancing that is the ongoing Treasury buying panic, mostly driven by the flight of European capital into the US. The 1.70 level on the 10 year is the key benchmark to watch in determining whether that capital flow will be sufficient to send Treasury yields crashing further. The recent linkage would suggest that if yields do break down, stocks will go with them, with 1295 being the benchmark to watch on the S&P.

On the other hand, with no new long term supply offered next week, once the May 31 settlement is put to bed, the pressure on the market will ease until mid month at least. This report looks at the data likely to play a role in how these markets move in the weeks ahead.

Get the full sized chart with analysis in the Professional Edition Click here to download complete report in pdf format (Professional Edition Subscribers) including 29 pages of charts and clear, cutting edge analysis that you can use to gain an edge in the market. Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. 30 day risk free trial for new subscribers. Click here for more information.

3 month subscription to the Wall Street Examiner Professional Edition, Money-Liquidity-Real Estate package, renewing automatically unless canceled.

Price: $89.00

By clicking this button, I agree to the Wall Street Examiner’s Terms of Use.

Stay up to date with the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, along with regular updates of the US housing market, in the Fed Report in the Professional Edition, Money Liquidity, and Real Estate Package. Try it risk free for 30 days. Don’t miss another day. Get the research and analysis you need to understand these critical forces. Be prepared. Stay ahead of the herd. Click this link and begin your risk free trial NOW!

Enter your email address in the form to receive email notification when Professional Edition reports are posted.

Join the conversation and have a little fun at If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

This site uses Akismet to reduce spam. Learn how your comment data is processed.