The yellow chart represents the 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity.
Taking into account the brutal divergence and the inverse yields to happen, it must be assumed that the price will suffer an extreme fall in the coming months.
Comment
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The September 08 divergence was strong and not moderate as I described it. It was followed by a bullish primary trend of 10 years. Probably it was as strong as the current divergence, only in the other direction.
The September 08 divergence was strong and not moderate as I described it. It was followed by a bullish primary trend of 10 years. Probably it was as strong as the current divergence, only in the other direction.