Treasury Bond Yields Spike Higher; Nearing Trading Top

10 year treasury bond yield spike higher rally summer investing news image

Treasury bond yields spiked higher after a series of economic data releases on Thursday. This move higher appears to be the beginning of a move higher into mid-June’s Federal Reserve FOMC meeting.

I’m expecting that a move OVER 1.635% in the 10-year treasury bond yield should allow for at least a rally up to 1.76 into mid-June (and potentially 1.80%). This should mark an excellent time to BUY Treasury bonds.

Following a summer high in bond yields (low in bonds), I expect a decline in yields from mid-June to September.

Focusing on the here and now, Thursday’s spike higher should lead bond yields higher, which in turn will likely help Financial stocks. This spike higher put pressure on the Federal Reserve into their June meeting.

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Author has positions 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.

Edit: June 9 at 11:08 am CST – updated twitter link.