Chart of the Day - Wednesday, December 6, 2023

Today's Chart of the Day was shared by Brett Villaume (@brettvillaume). The US 10-year Treasury Yield ($TNX) dropped to a 3-month low of 4.11% today. It peaked in mid-October after reaching 5.00% for the first time since 2007. This decline in yields has fueled the recent rebound in stocks and crypto. However, Brett points out that $TNX is testing a potential inflection point, around 4.07%. This level coincides with the 200-day moving average, the March '23 highs, and the uptrend line from the Aug '21 lows. $TNX has every reason to bounce here, but if it breaks, it will send a very bullish message to stocks and other risk assets.