Saturday, August 7, 2010

Is Shanghai Index Chart indicating 10 Year T-Note Yield Will Bottom Soon?

10 Year T-Note Yield

Shanghai Index

Look at the two charts above, 10 Year T-Note Yield chart now looks so similar to Shanghai Index at the end of June.  Then shortly after Shanghai bottomed, and staged rebound.  My gut feeling is that 10-Year T-Note yield will bottom soon.  Then are deflationists wrong?  Maybe not, but if QE2 comes, they will be.

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