Rates Decline 5th Day in a Row

A less than expected gain of 0.1% in the core Consumer Price Index this morning caused the 10-year interest rate to again head south for the 5th day in a row after testing 4%.

Analyzing the daily move from a cycle perspective shows that we might be at the bottom of this short term move. The strong uptrend line in the rate chart along with cycle indicators suggest that again rates might again turn up to test the 4% level.