The US two year yield continues to push to the downside with the yield reaching a low of 3.787%. Closing below 3.848 today would be the lowest close going back to mid September 2022.
Looking at the daily chart, the yield would also close below the 200 day moving average for the second consecutive day (green line in the chart above). Admittedly over the last seven or so trading days, the price has been trading above and below that moving average level. However, the yield is moving further away from that moving average today increasing the bearish bias. Moreover, a close below 3.848% would be the lowest close this year.
The lowest yield for the year was down at 3.637%. That took the yield below the 50% midpoint of the move up from the April 13 low at 3.68%, but momentum cannot be sustained and the yield pushed back to the upside.
