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Back in 2011, Interest rates on a 10 & 30-year basis had risen sharply, putting them up against falling resistance lines and momentum was overbought. Did Ben come to the rescue and keep rates from breaking out? Whether Ben pulled the right strings or not, yields ended up falling hard, down to support and momentum became oversold.
Now yields on both the 10 & 30-year basis are back at the 2010 falling resistance and momentum is overbought again. Can Janet do as Ben did back in 2010 and keep rates from rising any further?
With only 35% bond bulls, investors are betting she can’t do it!!!
A big test for yields & Yellen is at hand right now!!!