Because the 10 Yr yield has such a close correlation to the S&P 500, it makes sense to expect SPX to follow TNX lower. I am quite sure when the Fed raised the interest rate, they would not expect to see the 10 Yr tank the way that it has been, or maybe they did. I don't know. In any case the risk-off move to bonds and yet not to the $USD, has caught many by surprise. I can't say that it caught me by surprise but then I am not an economist either. I simply trade the bias.
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