What is Yield Suction & Yield Magnet?
When the 10-year yield runs hot, one force pulls capital into the dollar and out of equities — the two faces of the "yield vacuum".
Definition
When the US 10-year yield climbs above roughly 4.10%, Core Strata flags a "yield vacuum" — the level where risk-free yield is high enough to start re-routing global capital. It shows up two ways at once: Yield Suction on USD pairs (high US yields attract capital into the dollar — the ⚡/% icon, "yields powering USD pairs"), and the Yield Magnet on equities (bonds now pay enough to pull capital out of stocks — the 🧲 icon, "capital flow to bonds"). Same cause, two effects.
Why it matters for trading
- Yields are the gravity of the whole system. Above the vacuum line, a USD pair and an index that look identical on the chart get opposite treatment — the dollar is pulled up, the index is pulled down.
- It explains "good news, stock falls" days: a hot yield print strengthens the dollar (Suction) while simultaneously capping equity upside (Magnet), even with no bad headline.
- It is a level, not a vibe — the regime arms at a specific yield, so you can see it coming and know which playbook (long USD, fade equity breakouts) the tape will run.