The US stock markets continued to display some divergence overnight. DOW ended down sharply by -361.19 pts or -1.39%. S&P 500 also dropped -17.89 pts or -0.56%. Yet, NASDAQ scored another record high, rose 55.25pts or 0.53% to close at 10547.75. However, the steep decline in 10-year yield could be a sign that risk aversion is sneaking back.
TNX hit at s low at 0.599, breached 0.6 handle, before closing at 0.605, down -0.048. In Asia, TNX remains pressured, down -0.0172 at 0.591 at the time of writing. Near term focus is back on 0.543 support, which TNX might attempt to test next week. There shouldn’t be any serious trouble for the markets if this 0.543 would remain intact. But a strong break there could bring steep decline back towards to spike low of 0.398. That would be a strong sign of risk aversion if happens.
