Interest rates have been creeping higher over the past several months.
This has increased investor uncertainty to levels not seen in a couple years.
Many are wondering how rising rates will effect their portfolios: bonds, real estate, gold, interest rates sensitive stocks, etc?
Well, yields are reaching up to a resistance level that, if broken, would bring “higher rates reality” to the markets.
Looking at the 10 Year Treasury Yield, you can see two distinct rallies off the 2016 low. The latest move higher is testing the 2013 highs in yields (1 & 2). You’ll also notice that momentum peaked (and diverged) in both instances. This could point to a coming pullback / consolidation.
Lastly, the 10 year yield has formed a rising wedge pattern with a very steep support trend line (3). If support breaks at (3), it could signal a peak in rates and bonds could rally. Stay tuned!
10 Year Treasury Note Yield Chart (TNX)
Twitter: @KimbleCharting
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.
