Tuesday was day 8 for the daily bond cycle and bonds appear to have taken a bearish turn.
The daily bond cycle peaked on Friday, day 6. Bonds formed a daily swing high on Monday. The bearish break lower on Tuesday has bonds close to forming a failed daily cycle. A break below the previous daily cycle low of 136.74 forms a failed daily cycle. That would confirm the intermediate cycle decline.
But a break below 136.74 has bigger implications.
July was month 13 for the yearly bond cycle. That places bonds in their timing band to seek out a yearly cycle low. A monthly swing high is required to begin the yearly cycle decline. While a break below 136.74 forms a failed daily cycle, it also forms a monthly swing high.