Holy Cow a big move in interest rates is taking place this morning! Does this mean an important breakout/higher interest rates are about to happen? Could be!
This chart looks at the 10-year yield on a weekly basis over the past 12-years. For sure the long-term trend remains down and momentum recently hit the lowest level in the past couple of decades!
Did a long-term bottom take place this year near .5%? Might have!
The Power of the Pattern shared 3-weeks ago that 2020 could mark a “historic low in interest rates!
TNX has experienced a strong rally of late after it looks to have successfully created higher lows at the bottom of its 6-month trading range.
The rally of late has it testing the June high in yields at (1). As it is testing the top of its trading range, its momentum looks to be creating higher lows and hitting new 6-months highs at (2).
If yields succeed in breaking above strong and important resistance at (1), look for TBF to continue to do well and TLT should be much weaker!
A very important breakout test for yield and the global prospect of growth is in play at (1)!!!