Good morning … (concessions are) easy come and easy go. It would be hard to imagine a 5yr auction going as well as a 2yr auction (although one doesn’t have to imagine because it DID happen) so with THAT in mind, Yields appear to be at / near resistance (yellow) while a shocking hike (100bps tomorrow) would likely be needed to see 5yy up nearer 50dMA of 3.04. That seems like a stretch not unlike sentiment with momentum becoming overBOUGHT (red). For a somewhat healthier more robust look at / discussion of 5yy see just below. This afternoon’s liquidity event (5yr auction) sure could use a concession but then again, ZH (and global Wall St) reminds,
Good stuff Steve! Thank you for your insights