The All Important 30-05 YC

Over the past 18 months it has been telling to sit back and watch the yield Curve that Alan Greenspan has repeatedly called the most important. And that is, a stable and working economy is one where you see 30 year yields rising versus 05 year yields. This measure really tells a story because it is beyond the 2 year and 3 month area which is dominated by FED activity.

If you are a FED follower, that is a different story, you should watch the 2 year vs 3 month YC, but that is really watching where the whores are walking.

Here is the 30-05 monthly data chart going back to June of 2021. What you see here is a double bottom, week of 9/26/22 and week of 3/6/23. Looking at the all important 50 week MA, we see it bottom on 3/6/23. And finally we see a little wiggle last attempt by players to push this YC down beginning on May 11. Now we should be in a zone where the May 11 highs are taken out.

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