The really important thing is that the yield on the 10-Year Treasury Note is inching back up. The yield dropped slightly after last week’s FOMC announcement, but that respite was short-lived. Yields have been in an uptrend since May, and this trend is likely to continue.
It is interesting to note that yields are following the same pattern that started with the May FOMC meeting. Despite all the bond buying by the Fed which should create demand and therefore lower yields, the opposite is happening. Yields are rising, and it is relentless. It is happening slowly, but surely, like a powerful locomotive chugging away, which I think is a good way to describe what is taking place.
- James Turk via a recent King World News interview: