A Potential Target For Yields

Alfonso Depablos, CMT
October 4, 2023

From the Desk of Alfonso Depablos @Alfcharts

Rising rates have been a worldwide phenomenon for the last two and a half years as yields have climbed non-stop.

Not only are we seeing the curve in the US reach decade-long highs, but the benchmark yields in Germany, France, Spain, and even Japan are also trading at multi-year highs.

Below is the US 10-year Yield reaching its highest level since 2007 after breaking out of a multi-month base three weeks ago.

As you can see, TNX is already on its way to a fresh leg higher after consolidating for roughly a year.

Although we have yet to determine where it will end up, as technicians, we often measure the pattern's height to obtain a potential target.

This gives us a level of 5.45 for the 10-year, giving some room to keep running higher.

We hope you enjoyed this post.

As always, we love to hear from you, so shoot us a note and let us know what you think.

Alfonso

Filed Under