When bond yields rise, bond prices fall, and vice versa. The presenter uses the U.S. 10-year Treasury to show how yield trends in different market stages directly predict the opposite movement in bond prices, giving traders a way to anticipate price swings.
So that's another way to gauge prices of bonds. Correlation. Yeah, they have inverse correlations. You know how bond yields and bond prices are inverse to each other? You could have looked at the US 10-year yield again, but since it's inverse, while bonds had a stage 2 uptrend, the 10-year yield had a stage 4 downtrend. And when the 10-year yield was basing, the 10-year bonds or notes were topping out. And then when the 10-year yield entered stage 2 uptrend, bonds were stage 4.
