Investor Alert: 10 Year Yield Breaks Down, Here Is The Target

As GDP, non farm payrolls and other economic data have started to weaken, the 10 year yield broke below major support. This was a channel breakdown as seen in the chart and signals further downside in yields (rates).

Economic slowing is taking place in the United States. This is also seen in the earnings from major consumer brands like Disney (DIS) and Starbucks (SBUX).

In addition, CPI data recently showed inflation stalling and even starting to fall slightly. While still elevated above 3%, CPI will likely come down if the economy weakens further.

Oil and gasoline are two key components that have started to fall. Both are significantly off their 52 week highs.

Per technical analysis, yields will likely continue down over the next few weeks and months, hitting 4.10% before finding major support.