10-Year Treasury Yield Nudges HigherThe 10-Year Treasury yield has been rangebound for about 1-1/2 years, but some traders may see upside risk.
The first pattern on today’s chart is the series of lower highs since October 2023. TNX violated the trendline in December and may be holding above it now. That could suggest a period of downward movement has ended.
Second is the December low of 4.13. Yields tested and held that level in early March. They made a higher low in subsequent weeks -- even after the Federal Reserve reduced quantitative tightening (QT). MACD is also rising.
Third, TNX ended yesterday at its highest level in more than a month. It’s also challenging a gap from February 25 caused by weak consumer confidence.
Finally, Wednesday’s close was above the peak from June 2008, when the global financial crisis was taking hold. Staying here may confirm a long period of generationally low borrowing costs has come to an end.
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