Watch Treasuries for signs of the next Equity selloff

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The inverse correlation of Stocks and Bonds have been quite telling in the recent months of equity volatility.
The 10Y yield went from 3.25% in early Nov to lows of 2.55% as participants flew to safety in treasuries.

In the last couple weeks as equities have recovered from the Dec 24th meltdown, treasuries have been sold with yields resting now around 2.75-2.8%.
I am looking to see demand for treasuries as the major Equity indices test overhead resistance.
After a 14% rally on the S&P in a matter of a month a pullback looks likely.

If we see 10Y yields once again trending down expect blood for risk assets.

Cheers

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