US Government Bonds 2 YR Yield - Strong bearish divergenceOn the above 2-week chart the 2 year bond yield has increased an astonishing 4500% in a little over 2 years, perhaps you’ve noticed?. The chart is now indicating rising yields are a thing of the past, at least until 2026. From here on it is pauses and cuts until the real economy shows signs of recovery. This will likely be a difficult 2 years ahead for many.
The bearish divergence is significant. Multiple oscillators now print bearish divergence with the rising yield as measured over a 10 month period. Look left. On this time frame with this many oscillators printing divergence, the yield corrected or appreciated significantly and with momentum.
Astonishingly a majority of ideas in social media circles and even here on tradingview.com are calling for higher yields. Maybe; however the chart is saying something very different.
Is it possible yields continue to increase? Sure.
Is it probable? No.
Ww