US 10-year yield rises to 7-year high, what's next?
|- The US 10-year treasury yield rose to a 7-year high of 3.095 percent.
- The yield could rise to 3.5 percent this year, the technical charts indicate.
The yield on the benchmark 10-year treasury note finally cut through the resistance at 3.04 percent and rose to 3.095 percent yesterday - the highest level since 2011 and the technical charts indicate the party has just begun.
The bull flag breakout, a bullish continuation pattern, confirmed in mid-April (seen in daily chart) indicates scope for a rally to 3.5 percent.
The bullish setup in the daily chart only adds credence to the long-run bearish-to-bullish trend change, as highlighted by the inverse head-and-shoulders breakout on the weekly chart.
Clearly, the 10-year yield looks set to rise in the USD-positive manner in the near future. As of writing, the yield is trading at 3.07 percent.
Daily chart
Weekly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.