Just as interest rates are pulling back, one particular government rate appears to be nearing an important moment.
The 10-Year German Bond yield.
Above is a long-term “monthly” chart of the 10-year German Bond Yield. As you may recall, this bond was the only bond of the G8 countries to yield a -1% yield at the 2020 lows. Yikes!
Currently, this yield has reversed lower from the topside of falling channel resistance (marked by each 1).
The decline currently has German bond yields trading into a very important support area that global investors may want to watch closely: the 23% Fibonacci support level at (2).
What the German Bond does at (2) will very likely send a message globally about the direction of interest rates! Stay tuned!!
This article was first written for See It Markets.com. To see the original post, CLICK HERE.
