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The yield on the 30-year bond hit the 2008 financial crisis lows back in July of this year, potentially creating a double bottom in yields, four years later. Since the potential double bottom, yields have been creating a series of higher lows.
Now yields are attempting to break another falling resistance line at (3) in the chart above. Should we “listen” to bond yields? Are they suggesting a positive message about the stock market and the outcome of the “fiscal Cliff?” They suggesting lower bond prices, regardless of the message?