Treasury Yields Test Key Support

Falling Treasury yields indicate that investors are worried about the economy and/or problems in the credit markets.  As investors flock to "safe" paper, yields fall.   As shown in the chart below, the yield on the 10-Year Treasury Note has fallen in recent days and is currently resting on key support levels marked by its mid-July lows.  Prior to the rally in yields from mid-March to mid-June of this year, the yield on the 10-Year was in a protracted downtrend.  If the support that the yield is resting on now is broken, a new downtrend will be in place.