The US10Y yield is at 2.81% and has charted a series of lower peaks followed by lower troughs. Moreover, the momentum of the down trend has increased. This is seen by the shift from the shallower green trendline to the steeper orange trendline. This is despite the fact that the market is expecting a 25bps hike by the Fed today.
The fact that the yield is coming to down at pace is an indication of capital moving into bonds as a safe haven. This is due to the sell off of risk assets, the decline in energy prices and the uncertainty regarding earnings going into 2019.
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