This Chart Should Concern Bond Bulls

All hell has been breaking loose for the last week. From the Shanghai stock market going into full crash mode to Greek citizens formally voting to leave the eurozone to the New York Stock Exchange halting trading for 4 hours, there’s been a lot to be concerned about if you’re an investor. Meanwhile, 10-year Treasury Note yields made another higher low and then proceeded to rally aggressively during today’s session:



The uptrend in yields is still very much intact and the fact that yields didn’t spend much time below a rising 50-day moving average despite a cornucopia of negative news should cause ample concern for bond bulls. The sheer size of the base of this bottoming pattern is impressive enough, not to mention the potential room for upside in yields is considerable when laid against the backdrop of a 30+ year bond bull market: