The break down in Treasury yields that we warned about a couple days ago came to fruition today:
10-year Treasury Yield (Daily)
This is a significant breach of a key level of support (2.13%) and the breakdown offers a downside target of ~1.90% which happens to line up with the 2015 lows.
A further decline in Treasury yields (rally in bonds) should bode well for precious metals (although that correlation didn’t hold during today’s session) and could offer final confirmation that the U.S. economy is in recession (Treasury yields decline in low/falling growth environments).