Sunday, August 07, 2011

US Treasury Bond Yields Leading World Equity Markets Lower

As noted here, here and here, the US 10-year treasury bond yield trends are leading the trends in other asset classes. Last week we had a good example of how US bonds are "leading" the equity markets around the world.

The 2.90 US 10-year Treasury bond yield support level, well discussed in the mentioned posts, eventually gave way and started the plunge on Friday July 29th, as noticed in the updated chart below:



On Monday August 1st, German DAX dropped through key support (6-month uptrend line and 200 SMA), see chart below:


Tuesday August 2nd was the day when key support levels were broken in many equity markets including the US S&P500 Index (levels discussed here, see updated chart below),


the Romanian BETXT Index (levels discussed here, see updated chart below),


and the Dow Jones World Stock Index (levels discussed here, see updated chart below).


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