$10-YR T-NOTE - main 2506(ZNmain)$
Maintaining a bullish outlook overall despite common sentiment that the bond market will tank. The market is still digesting the news of the recent downgrade on 16 May 2025.
The graph attached references the high of the 10Y Yield Curve on 19 May, starting it's ascent after the news.
The yield pared back and is currently attempting to ascend again to new highs. Media outlets have portrayed the US Treasuries to be vulnerable at present but I feel there are other factors to consider:
1. This is not the first time a downgrade has happened and history has proven that it bounces back each time
2. A potential lower interest rate environment may be more imminent than perceived
3. The current level of the bond market itself is already relatively low
Taking a step back from the fear mongering regarding the US credit rating and piling debt, I feel a recovery is definitely underway for $10-YR T-NOTE - main 2509(ZNmain)$ !
Modify on 2025-06-03 18:28
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