The two most important charts in the bond market, according to traders

It’s been a rocky week for stocks as falling yields raised fears the global economic recovery from the pandemic will come in fits and starts. On Thursday, the 10-year yield touched 1.25%, its lowest level since February. The S&P 500 is set to close out the week barely positive. CNBC’s “Trading Nation” asked two technicians to cut through the noise and share the chart that explains the market dynamics in play right now. Bill Baruch, president of Blue Line Capital, is watching the Federal Reserve. “It’s most important to highlight the Fed’s balance sheet, not the massive expansion we’ve seen over the last decade, but really the Fed’s balance sheet over just this year,” Baruch said Thursday. “They’re buying debt, and ultimately, what you’re seeing is as you’re underpinning the Treasury complex you’re suppressing yields.”
Source: CNBC – Bonds