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.
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Alfonso