Why Lower Yields is not a Bullish Sign for the Stock Market

Bullish Studio

Guy Adami sounds off on market action.    Guy Adami on the 10-YR -  "You're talking about a 17bps intra day move in something that should not move like that in a month."  Guy also discusses how he thinks the 2-YR is going to stay stubbornly high.

Transcript

00:00 - Yeah, Guy, what's your take on the market action?

00:03 - Well, it's a bond market volatility,

00:05 which we've talked about literally for months,

00:07 and now everybody seems to be jumping on that bandwagon.

00:10 I heard it a few different times today.

00:12 I mean, Dan said 303.

00:13 I think 10-year actually got up to 307,

00:15 closed on the lows at 2.9%.

00:17 I mean, you're talking about a 17 basis point intraday move

00:20 and something that should not move like that in a month,

00:23 and I think that's somewhat remarkable.

00:24 And I think 10-year yields will continue to go down

00:28 somewhat counterintuitively

00:29 because of the reasons Dan just said.

00:31 Things are slowing down.

00:32 Yields going lower in this environment

00:34 is not a bullish signal,

00:36 and I think that two-year is gonna stay stubbornly high.

00:38 So I even was shocked at 9.1%.

00:41 I didn't see a nine handle.

00:42 That was not on my bingo card.

00:44 But what's even more shocking is the people

00:46 that still somehow have this belief

00:49 that these, I won't say geniuses, but I just did,

00:52 at the Federal Reserve,

00:53 can somehow navigate their way through this.

00:55 The bottom line is there's no shot of that happening.

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