The talk over the past couple of months has been, interest rates are rising and the Fed will raise rates very soon. Joe Friday feels a big test is in play, before one can say the “rate trend has changed!”
Below looks at the yield on the 10-year note, over the past 20-years.
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The yield on the 10-year note has remained inside of falling channel (1), creating lower highs and lower lows, for the majority of the past 20-years. The top of the channel is being tested as resistance at (2), as momentum is reaching lofty levels.
Joe Friday Just The Facts; The trend in rates remains down, with a key resistance test in play at (2). If rates breakout at (2), they would accomplish something they have not been able to do since the mid 1990’s! Just the facts, what takes place here, could well be at least a short-term game changer!
What happens at (2) should have a large impact on TLT, XLU, IYR going forward, as “EACH” is testing 6-year rising channel support right now, with momentum on each, reaching oversold levels.