Broad equity market indexes have declined, and implied volatility has risen considerably. Treasury yields have fallen as much as 50 basis points since late April, primarily as a result of safe-haven flows that boosted the demand for Treasury securities.
Capital flows moving flow Europe to the US into bonds and gold (conveniently left out by the official testimony) have been driving them higher. The upside force in long bonds, like the downside force in equities, is beginning to wane. The 5/6 spike, or swing high in bonds has been tested twice on decreasing volume.
What cannot break through resistance with force will reverse and attempt to break through support with force.
US Long Bonds ETF (TLT):
Source: federalreserve.gov
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