The symbol “TLT” which tracks the value of the “U.S Treasury 10 year bond price” has “firmly been rejected” at a very strong level of resistance around 107.50 and continues to fall – now at 105.06
When “bond prices fall” ( the price at which you purchase the paper ) in turn “bond yields rise” ( the rate of interest paid out on the bond ) – as simple mechanics of how the bond market works.
When we see bond “yields rise” and “bond prices” fall, we better understand why the Fed currently buys around 85% of the new debt issued by the Treasury, as “if they didn’t” – bond prices would crater, and the rate of interest owed would skyrocket crushing the U.S under the “already unsustainable” debt load / interest payments.
We saw Greek bond yields move upward in the neighborhood of 27% to up to 48% during the crisis, signalling to the world that in order to “encourage investment in their country” bond holders would require this kind of payout.
This kind of rise in bond yields is a massive forward indicator that ” a country is in real trouble” as sellers dump like mad – and bond yields shoot for the moon.
Always ALWAYS keep your eyes on the bond market for signals of larger moves to come.