10-year Treasury yield death cross could signal bond rally - The Tell - MarketWatch

10-year Treasury yield death cross could signal bond rally - The Tell - MarketWatch:



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“Should the 10-year yield put in an actual Death Cross as the 50 DMA drops below the 200 DMA, it would likely signal a rally for bonds and an accelerated slide down in yield with bonds trading inverse to yield. Put otherwise, a possible Death Cross in the 10-year yield would probably suggest that this year’s rally in bonds is likely to continue and perhaps gain significant momentum.”

“After the September 2007, September 2008 and June 2011 death crosses, the 10-year yield dropped by more than 100 bps while it dropped by about 80 bps after the June 2010 death cross. This sort of a potential decline in yield may or may not happen now, but recent history certainly does suggest that death crosses in the 10-year yield tend to precede decent declines in yield in relatively short periods of time.”