Rising Treasury Yields may be Affecting the Homebuilders
The 10-year Treasury Yield ($TNX) surged from 1.6% to 2.6% and then consolidated for a few weeks. Yields could be starting another leg up as $TNX bounces off support this week. This is having a negative impact on homebuilders. Notice that the correlation between the 10-year Treasury Yield ($TNX) and the Home Construction iShares (ITB) turned negative in late May. ITB does not like something because the ETF is testing its 2013 low with a sharp decline this week.
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