Chart Spotlight: U.S. Treasury Yields Under Pressure

As many of you know, I like to share charts that on trend lines. Whether price is testing, retesting, breaking out, or breaking down through a trend line, there’s a lot to be gleaned from them.

Further, the 30 Year U.S. Treasury Yield (INDEXCBOE:TYX) is attempting to break through its up-trend line.

So why is this important?

A breakdown in trends often signals a loss of momentum and typically a period of heightened risk for those betting with the trend (prior to it being broken).  As for yields, they not only effect the treasury bond price but they often give us clues about the economy and broader economic outlook.

Sign up for our FREE newsletter
and receive our best trading ideas and research

As you can see in the chart below, the 30 Year U.S. Treasury Bond Yield is attempting to break down through support.

Bond bulls (on price) are looking to push yields lower, while bond bears are in need of a quick reversal and recoup of the trend line.

30 Year U.S. Treasury Bond – Breaking Its Uptrend Line?

30 year us treasury yield break down trend bearish decline_25 august 2017

It’s also worth noting that the 10 Year U.S. Treasury Bond Yield (INDEXCBOE:TNX) broke down through its uptrend support some time ago.  But as you can see in the chart shared today on See It Market’s twitter feed, it hasn’t violated its breakaway gap the same way that the 30 year yield has (compare the two charts). This leaves a small opening for yields to recover a bit.  But the technical damage is notable.

In any event, yields have been under pressure and may be sending a message to investors…  Thanks for reading.


Twitter:  @JLyonsFundMgmt

The author may have a position in mentioned securities at the time of publication.  Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.