The U.S. 10-year yield has pulled back from the 2.72% high on July 7th and 8th to below 2.5%. A break of this short-term support level would make things interesting between the bulls and the bears.

More comments from Bernanke (the Fed can do more and no preset course for tapering) and some weaker housing data (housing starts YoY % change has hooked down) have cooled the explosive rise.


But while rates have come down, inflation expectations have risen.  This is a good combination for risk assets and indices are hitting new highs.  Stay long if you are or get long if you are not.

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