US 10-year yield opens sharply lower today and hits as low as 2.352 so far. Breach of 2.356 short term bottom suggests that recent down trend from 3.248 is ready to resume.
Outlook is rather bearish too as TNX was rejected twice by falling 55 day EMA. Next target is 50% retracement of 1.336 to 3.248 at 2.292.
In the bigger picture, current fall is so far, seen as a correction to the up trend from 1.336 (2016 low). Rejection by long term channel support suggests it’s far from over. We’d expect a test on 61.8% retracement at 2.066 before forming a bottom for sustainable rebound.