Rick Santelli on the 10-Year Treasury Yield and Market Volatility

The 4% Psychological Level for Treasury Yields

• 🎯 The 10-year Treasury yield is hovering just above the significant 4% psychological level.
• 💡 This 4% mark is crucial, as the market seems to consistently pull away from it whenever it's approached.
• 📈 The yield briefly dipped below 4% intraday on September 19th and again this morning, but has not sustained that level.

Treasury Market vs. Equity Market Volatility

• 📊 Despite significant volatility in the equity markets, the Treasury market is showing remarkably low volatility.
• ⚠️ The range in the Dow is much larger than the range observed in the 10-year Treasury yields today.
• 📉 The inability to keep the 10-year Treasury yield below 4% is seen as telling, especially given dovish commentary from the Fed.

The Dollar Index and Market Signals

• 💰 The dollar index is also behaving in a way that could be considered dovish, hovering near its highest closes since late July.
• 🔍 The market's reaction to these levels suggests that the Fed's communications may not be fully dictating market movements.