US and Japanese government bond yields are entering breakout and parabolic phases, threatening to destabilize an equity market that has become detached from rates volatility.
Key Takeaways
- 1.US 10-year yields have broken out of a major technical triangle formation and the 100-day moving average has crossed above the 200-day.
- 2.Japanese 10-year yields are in a parabolic 'panic mode', creating a destabilizing global macro environment for equities.
- 3.A significant divergence has formed between equity indices (NDX/SPX) and bond market signals (Inverse Yields/MOVE Volatility).
Table of Contents
- Rates Breaking Out
- The breakout
- Chaos levels
- Some like it parabolic
- Dangerous divergence
- Rates volatility
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Authors
Jaccendy
Securities
US 10-year Treasury yieldUS 30-Year Treasury YieldJapanese 10-Year Govt BondNDXSPXMOVE
Themes
Bond-Equity DivergenceRate Volatility vs. Absolute Levels
Regions
North AmericaAsia PacificUnited StatesJapan