The 10-year continues sideways moving thru the channel exploring 1.85% on the top side and 1.55% on the bottom side. The 200-day MA is sloping down, a negative sign. The 20-day is under the 50-day is under the 200-day, bearish. The red lines show negative divergence as price printed the matching high and also overbot stochastics, bearish. The green lines show some short-term momo so a move higher for another matching high cannot be ignored, but overall, the yield should likely stumble lower towards the bottom part of the channel moving forward.
The TBT ETF moves in the same manner as the TNX. TBT is the ultrashort for 20+ year Treasury price. If TNX is moving higher in yield, with equities moving higher, the Treasury price is moving lower. Thus, TBT, is an ultrashort, so it moves opposite to the Treasury price, so Treasury price moving lower causes TBT to move higher. That’s why TNX and TBT move coincidentally. Then TLT moves opposite TNX. So when equities are moving up, Treasury yields are moving up, note and bond prices down, TBT up, and TLT down. And visa versa.
The 10-year yield is motoring along sideways and may continue in that manner for the foreseeable future. The 10-year yield sits at 1.77% as this is typed on 12/26/12. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.