Ever since last July, yields on the 10-year U.S. Treasury have been steadily rising with a series of higher highs and higher lows as economic data has improved. As shown in the chart below, yields have been moving within an defined upwardly sloping range. That is, until today.
Over the last week, economic data has been consistently coming in lower than expected, taking yields on Treasuries down with it. After today's horrendous employment report, the yield on the 10-year has now broken the uptrend that has been in place since last summer. What's next? Sub 1.5% Treasury yields?